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Estd 4.22.2023
Based on our Price to Scale book, here’s how to think about incorporating set-up or onboarding fees into your SaaS pricing:
• Direct Value Proposition: Our book explains that when you start charging fees for implementation, onboarding, and training—services that were once offered for free—customers generally accept them because they’ve come to expect these additional charges. It’s essential that you clearly articulate the value these services add.
• Transparent Communication: Communicate upfront what the fees cover. Customers are more receptive when they see that the fee is tied to tangible benefits like expert onboarding, faster time to value, or dedicated training sessions.
• Revenue Stream Opportunity: Instead of viewing these fees as potential obstacles, our book suggests considering them as a separate, valuable revenue stream. This strategy helps in covering the actual costs of implementation while elevating the perceived value of your offering.
• Internal Alignment: While there might be some internal reservations (e.g., from the sales team), our experience in the book shows that once this pricing change is implemented and clearly explained to customers, backlashes are minimal. Most clients expect to pay for these additional services—once you set the right benchmark, customer pushback typically diminishes.
In summary, incorporate set-up and onboarding fees as distinct line items that add specific value, communicate their benefits transparently to your customers, and consider them as an important revenue stream. As discussed in our Price to Scale book, this approach helps align both the internal teams and customer expectations, leading to an effective pricing strategy with minimal resistance.