Some say we charge too much.
Some say we charge too little.
Some say we shouldn’t be a subscription.
Some say we should be free.
What is it really?
We all know the famous saying that people don’t know what they want until you show it to them.
For most SaaS companies, what you create doesn’t really have an existing market. That means, you are a new product to the people you want to serve. It’s why you will certainly face some push-back to your pricing.
We faced that and are still facing that to this day even with ultra happy subscribers relying on our app daily.
It’s just the nature of the beast.
This post is not going to tell you how you can come up with the perfect pricing because there’s no such formula.
You know your value. You know your costs. I don’t.
That’s why you need to come up with your pricing yourself.
What this post is for is to show you how I look at these different segments and how to deal with people like them.
To those that say we charge too little
These are your top guys. They are the early adopters that are willing to test and will stay with you in the long run. They will be the ones that promote you to their friends. They are the people that see your value already. It won’t be hard to keep them, so be sure to keep them happy. Give them a good offer if you can. Communicate with them regularly and they will forever love you.
To those that say we charge too much
These are your middle of the pack guys. Either you lose them right off the bat or they give it a try and see the value in the long run. These are the people you nurture and if you lose them, you lose them. Don’t fret and get mad if they send you a message that you are expensive. Just keep your cool and realize that they don’t know you. The fact that they are there tells you that they are interested, it’s up to you and your team to close the deal. If you look at it like that, then you’ll start to see the possibilities and not just look at them like nagging prospects.
To those that say we shouldn’t be a subscription
You will get these people. Much like the previous group, you can still close these people. Don’t get angry. Don’t let your emotions get the better of you because they don’t know any better. They don’t know the costs involved, how much your servers are, how much a great developer is worth, how much support costs and so on. Chances are, these same people are using an existing software that they bought for a 1 time fee (and a 1 time setup fee) and in many cases, they are paying for maintenance costs, then they pay support costs if they need help. Now, isn’t that also a subscription? Get on the phone, talk to them about their concerns and show them how you differ. Trust me, the other party can’t match what you offer, it’s why they are contacting you nagging about you being a subscription!
To those that say we should be free
These are the worst type. These are freebie seekers or just spoiled from all the free stuff out there. There’s a lower chance to convert these people but if you do get the chance to get them on the phone, just explain what they are losing because of free-ware. Most industries have “standards” and what they are using are usually not complying to standards. Most of them also lack the stuff they need, it’s why the person contacted you. The usual suspects: mobility, encryption, security, limits, updates and support. There’s a reason why those are free, right? They just don’t realize it yet.
As you can see, there’s always a way to deal with these different segments of people.
Talk to them, pre-qualify them to see if you’re a great fit and go from there.
To many prospects, they just need somebody to talk to. At least in my experience, that already makes a world of difference.