How SAAS Pricing Plans Have Evolved Over a Period of Time
Via Pluggd.In
[In continuation with our coverage on SAAS industry, here is a guest article by Paras Chopra, founder of Visual Website Optimizer. In the earlier article (How to Price your SaaS Application – The Definitive Guide), Shalin walked us through the different pricing models of SAAS applications. Paras, in this article analyzes how pricing plans of companies have changed/evolved over a period of time].
We are in the process of finalizing pricing for my startup Visual Website Optimizer, which is an A/B and Multivariate testing tool. As you can imagine, fixing price is one of the toughest decisions that a startup has to (inevitably) take. Once fixed, it could be extremely difficult to change it without annoying a lot of customers. We want to be extra sure that we don’t end up under- or over-pricing Visual Website Optimizer. So, how do we decide what to charge?
Asking beta users can be one of the strategies and we actually used that for VWO. However, it turned out to be not the best of our ideas because users actually correlate price with quality. Further, if a product is innovative (like VWO is), users aren’t able to rationally determine ...
Read the full story
Make a comment