Ask HN: Most successful SaaS pricing structure you've found?
Details like how much more revenue a product can bring by charging 99cents instead of $1 fascinate me,and I'm curious to see how that translates to the SaaS world. Thanks!
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My lesson is that you need to A/B test everything, since the thing that works is never what you think will work.
For example, this terrible wall-of-text absolutely destroyed a pretty 37 Signals-esque 3-column pricing chart in A/B testing:
https://www.s3stat.com/Pricing.aspx
I didn't believe it, so I tweaked it and ran the test again. Exactly the same result. So those paragraphs stay, with the same unordered order, goofy typography and everything else. Nobody touch anything! It's perfectly balanced at its local maxima.
In the B2B space, it really bothers me when pricing is listed for a service where the expectation is to be a long-term customer, but pricing is listed per month. It's doubly aggravating when the price isn't rounded to the nearest $10 (e.g. don't price the iPhone SE as $399 b/c that's $400). Cloudflare, while far from the only perpetrator, is the my most recent experience with this crap. If I'm evaluating CDNs, it's not like I want to switch such a service monthly.
I have to believe we are all trying to please the bean-counters w/in our own orgs, but it is almost insulting.
Generally:
- 79$ (solve a business problem and its worth it. There's no difference between 29 or 39 or 79 for a business user with a credit card.)
- $399 (basically max to buy without approval if you're a manager, anything below 500$.)
- enterprise (aka call us, you'll need approval for this internally.) You could add a 799 plan here, or a 1999 plan, etc.
You want to stay away from 9$ and such unless you're selling to consumers, not businesses, in very high quantities (eg. you're netflix).