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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 concise strategy drawn directly from our pricing philosophy in Price to Scale:
- Direct customer surveys can be a useful tool—but they work best if you avoid a simple “how much would you pay” question. As noted in our book (see page 63), asking directly for a single price point can lead customers to provide a lower number than what they’re actually willing to pay. Instead, structure your survey to include context and anchoring. For example:
- Start by explaining the product category or the specific capability of your product.
- Offer a range or benchmark pricing for similar solutions, then ask where your product might fit.
- Use controlled experiments or A/B tests:
- Roll out a limited “pilot” increase for a subset of customers.
- Monitor customer reactions, conversion rates, and churn. This can provide real-world evidence of how price-sensitive your market is.
- Consider phased or feature-based pricing adjustments:
- Instead of a blanket price increase, test additional features or a premium tier. This approach lets you gauge willingness to pay in context. It also aligns with our discussions on balancing market share and revenue (refer to discussions around margin versus market-share optimization in our book).
In summary, leveraging well-structured surveys with proper context, as well as controlled pricing experiments, can help you accurately determine if your customers are willing to pay more. This measured approach ensures you capture customer sentiment without the biases inherent in a singular direct question.