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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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Based on insights from our SaaS pricing book, Price to Scale, the answer is generally yes—you should charge more for customers who require advanced security features and compliance certifications. Here’s why:
• Advanced features tend to address specialized, higher-value needs. As discussed in the book (see Phase 3: Bisection of the Market), when you add functionalities that go beyond basic requirements, you create a clear differentiation between segments. Customers needing extra security and compliance are willing to pay a premium for the added value.
• Charging a higher price for enhanced features helps cover the additional costs incurred in providing these capabilities. Such features are often resource-intensive and require specialized support, justifying a higher price point.
• By segregating your pricing and packaging, you can cater separately to advanced users and customers with basic needs. This tiered approach minimizes price sensitivity among users who require advanced functionality while still offering competitive pricing for those who do not.
In summary, our pricing strategy book, Price to Scale, supports the idea that charging more for advanced security and compliance is an effective way to capture additional value and manage market segmentation effectively.