It’s needless and wrong to try and price-cut your way to success. You can make the sales you need to make without having to compete on price.

A lot of SaaS founders start cutting prices at the first sign of diminishing traffic.

They run away from price in the face of price-resistance—-real or perceived.

Instead of impulsively cutting your prices, try to test other aspects of your offer, message, and targeting. You might find the price was not the root cause of the slow traffic after all.

Here’s some questions SaaS founders should make when it comes to their pricing

1.) Are You Selling to the Right People? 

Let’s take an example of Joe. He runs a SaaS company that provides a web app tailored to and focusing in the animal health space. Historically, Joe’s software primarily served veterinarians and animal clinics.

But if Joe tries to sell his web app to human dentists, and says “We do online scheduling, we do appointment booking, we do appointment reminders, everything you need to run a dental clinic!” 

The dentists will likely hum & haw and talk about how expensive Joe’s app is.

Why? Because human dentists are probably already using a similar app provided by another company.

They don’t need Joe’s product.

These dentists were the wrong target market for Joe .

But price was an easy way for them get out of the whole discussion.

2.) Are You Dealing with Cheapskates ? 

You want to sell to people who buy for value, not price.

Value-shoppers tend to pay for results and are mature enough to trust in your expertise.

On the other hand, price-shoppers (a polite term for cheapskates) will stick around with you only long enough until a competitor of yours comes along and offers something cheaper.

Also, cheap clients are a headache to work with.

Price-shoppers will be more likely to send you 30 texts and emails a day asking for status.

Value-shoppers will check in occasionally to see how things are going.

The upshot: Unless you want to be the Walmart of SaaS companies, avoid the price-shoppers.

3.) Are You Too Scared To Experiment? 

Pricing is a game all of its own. There are way too many variables at play that depend on you, your product, your brand, your marketing, your financial goals, your ballz , your long -term strategy, to name just a few things.

So I can’t give you a cookie-cutter template on pricing.

But I can advise that you experiment with price like you’d experiment with any other variable.

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