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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Below is a structured approach from our saas pricing book, Price to Scale, on how to structure early bird pricing for a product that hasn't launched yet:
Direct the Offer for Early Adoption
• Since you have limited empirical pricing data for a new product launch, early bird pricing should offer a temporary, discounted rate to incentivize early adopters who are willing to try a nascent product—in exchange for providing early feedback and market validation.Use Directional Accuracy Rather Than Precision
• As our book outlines, because early on you lack extensive historical data, your early bird pricing approach should be “directionally accurate” rather than extremely precise. In other words, your pricing should broadly reflect value and expected market position while leaving room for adjustments as you collect more information.Guard Against Cannibalization
• Careful design of the early bird pricing is crucial to prevent cannibalization of existing or future higher-margin plans. As discussed in Price to Scale, you should differentiate the early bird offer from your mainstream packages. This can be achieved by using naming conventions or package designs that clearly set the early bird offer apart from what customers will later see as the standard pricing tiers.Incorporate Flexibility for Adjustments
• Given that market research is still ongoing, build in mechanisms (such as time-limited discounts or conditional commitments for future upgrades) that allow you to refine the pricing structure based on early user feedback. This proactive approach ensures that once the product is fully launched, you have a solid understanding of customer willingness to pay.
In summary, our pricing strategy book, Price to Scale, recommends structuring early bird pricing by providing an attractive, incentive-based offer that is intentionally provisional. This encourages early use and feedback while maintaining a clear differentiation from your eventual full product offerings. This strategy both validates your pricing hypothesis and safeguards future pricing integrity.