Laura Ballarin

In this article, we will explore the different psychological pricing tactics and how to implement them within the SaaS industry in order to boost sales and enhance customer perception.

SaaS pricing strategies range from arbitrary number selection to fully optimized, value-focused plans.

Demand-based pricing is a strategic approach that involves setting the price of a product or service based on consumer demand. The objective is to maximize sales and profits by charging customers an amount they are willing to pay.

Skimming is a pricing strategy where you initially set your SaaS prices higher than usual, then gradually lower them over time. The idea is to attract a smaller target market first and generate initial revenue. 

Captive pricing, also known as captive product pricing, is a pricing strategy where a "core" product is offered at a lower price, but additional products required to fully use the core product are charged separately. 

Competition-based pricing sets prices based on competitors, ignoring production costs, product value, and consumer demand. This approach may fail to reflect the true worth of offerings.

Penetration pricing is a strategy used by SaaS companies and other businesses to draw in customers for a new product or service by initially setting a lower price.

Cost plus pricing is a pricing strategy that doesn't take into account competitor pricing, perceived value, or customer price sensitivity. However, it can be a useful starting point when you have limited information.

Discover why dynamic pricing is becoming such a popular and effective strategy for SaaS businesses, and find out how you can use this method to maximize your company's revenue.

Value-based pricing is a remarkably potent option for numerous SaaS companies. It entails determining the ultimate price based on what the customer truly values the most.

Consider the per active user pricing as an alternative to the per user pricing model. With this approach, customers pay for the individuals who actively use the product. This eases customer concerns about overspending

Feature-based pricing, a popular SaaS pricing model, allows companies to set prices based on the level of functionality provided. This approach is often used alongside tiered pricing, where more features come at a higher cost.

Per user pricing was once seen as the standard for SaaS companies, but it may not be the best approach for everyone. In fact, some consider it to be one of the worst pricing models.

Most SaaS companies avoid flat rate pricing due to its lack of adaptability and flexibility. While a few companies have made it work, the industry thrives on being able to quickly adjust to changes.

Usage-based pricing (UBP), also called “consumption-based pricing”, is one of the many SaaS pricing models. In a nutshell, it lets customers pay for a product based on their usage.

Tiered pricing is a common billing strategy used by many companies. This approach involves offering different levels of service or products based on predefined tiers.

The freemium model is one of many pricing models used by SaaS companies. By offering a free service to most users, it is primarily a growth strategy, as opposed to a standalone business model.

Let's dive into they key element of a successful pricing strategy: the pricing model. Find out how to strike the perfect balance between value and revenue and select the pricing model that is tailored to your SaaS business.

To fully comprehend the effects of SaaS churn on growth and find ways to minimize it, it's crucial to recognize the various types of churn and their impact.

BOFU content marks the end of the buyer's journey. It's what prospects engage with to finalize their decision before making a purchase.

Targeting a keyword over and over again will do more harm than good for your website. Fix keyword cannibalization for good to stop watching your rankings fall.

Many marketers often neglect MOFU content and focus on TOFU or BOFU content instead. That’s a mistake. While it may seem insignificant, MOFU is actually the most important part of the sales funnel. 

The question with TOFU content isn’t, “How should we do it?” — that’s as easy as riding a bike downhill. The real question is, “When should we do it?”

Before even considering creating a new piece of content, you should wonder if you already covered that topic before. If you did, but that article is not performing well, it might be time for a content refresh.