How do you pick your SaaS product price?

My approach may or may not be helpful since it's freemium: I chose a "bracket" approach where I have a free tier to undercut my competitors, and then pegged my paid tier above my competitors by about 50%. I justify the higher price as a premium because of better usability in general, and significantly easier onboarding.

Unless you have a market-disruptive product I would not suggest this approach, and would probably price it nearer to competitors' pricing initially. Raising prices and lowering prices aren't more difficult than each other. Moving from a free product to paid is more difficult.

I'm still new to this game as well, but I've been of the persuasion that it's easier to raise prices later on than it is to lower them. Granted, my product isn't a SaaS, either, so one-off purchases are going to be a little higher to begin with.

When I launch my "book club" later this year, I'll treat it more like a SaaS, and each book will be discounted somewhere between 30-50%.

There are a lot of different factors that go into a pricing strategy that you should consider including:

Who is your target market? What are their values, attitudes and behaviors? Kia and BMW both sell cars, but the price is miles apart and the customers are very different. Sure, some of it is budget, but even if many of those Kia owners could afford a Beemer, they wouldn't, because they couldn't justify the price to themselves.

How are your positioning yourself in the market? Let's continue with the car analogy. BMW is a premium brand, so the higher price supports that image. If they tried to sell a cheaper car under the BMW name, they would devalue the product. That's why they created a new brand for Mini Cooper.

What do you need to charge to meet your profit goals? Look at your expenses and forecasts before you decide on any particular pricing arbitrarily.

What is your product reasonably worth? Part of that is what is the price range of competitors in the market. But more importantly, how much is the solution to the pain point you're solving worth? Is it quantifiable? If not, ask customers and prospects.

Hope that helps. Best of luck!

We always start with comparing to competitors and either going above or below depending on our positioning in relation to them.

It's always been easier to raise prices and grandfather people in as we go.

No real process other than a gut feel based on what we are seeing with conversion and churn. However, we have yet to raise prices and regret it... so we should probably do it again. Wish we tested and adjusted more but it's just a hard hurdle to get over mentally/emotionally when things are going OK.

Checking competitors and testing out different prices are effective starting points.

I usually use this central question: would I pay for my service?

Using that as the main guiding post makes you not only feel more at ease with your pricing scheme but also let's you better gauge the value you're providing.