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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 our saas pricing book Price to Scale, a strong strategy for a vertical SaaS solution in a niche market with limited competitors is to focus on value-based pricing with a structure that clearly differentiates the value you deliver.
Here are the key steps to consider:
• Use the "Good – Better – Best" model if your solution naturally segments different customer needs or if you foresee subtly distinct value tiers. By bundling features into tiered packages, you align pricing with the specific use cases and price sensitivity of your niche customers. (See Chapter 3 of Price to Scale.)
• Consider a modular approach if your vertical market benefits more from customizing feature sets. This method assigns value to distinct functionalities so that customers pay for exactly what they need. It’s particularly effective when delivering specialized capabilities that set you apart from any indirect competition.
• Emphasize the customer value proposition: In a niche market with limited competitors, the focus is less on a battle over price points and more on the unique benefits your product offers. Understand which features resonate most with your target users and structure your pricing to reflect that premium value.
• Pilot and iterate: As highlighted in our book, getting the structure right is more important than the exact price. Start with a pricing model that fits your market’s specific nuances, and be open to adjustments as you gather customer feedback.
In summary, tailor your pricing by considering either a tiered "Good – Better – Best" setup or a modular pricing approach based on the distinct needs of your niche vertical. This strategy ensures your pricing captures the unique value you offer while positioning you favorably against any emerging alternatives.