3 Major Considerations Before
Hiring A SaaS Pricing Consultant
Pricing your SaaS product can make or break your SaaS business.
If your solution costs too much, you’ll have trouble acquiring new customers. If it costs too little, you might not be able to sustain your business in the long run.
With that in mind, SaaS pricing can be a bit of a challenge, especially for SaaS startups. After all, you’re trying to balance three objectives: maximizing your revenue, growing your customer base, and reducing churn.
That’s why some companies turn to a SaaS pricing consultant for help.
In this article, we will talk about three things you need to consider before hiring a SaaS pricing consultant: their potential benefits, when to get one, and what to discuss with them.
But first, let’s get on the same page regarding what a SaaS pricing consultant is.
What Is A SaaS Pricing Consultant?
A SaaS pricing consultant is a specialist who helps SaaS companies price their products.
They understand the market, what customers are willing to pay, and how to optimize pricing strategy to achieve specific business goals.
These consultants can come in different forms and sizes. You can hire individual consultants, or work with a consulting firm that specializes in SaaS pricing.
What’s more, each pricing consultant can have their own expertise. Some might focus on pricing for small and medium-sized business (SMB) solutions. While others might be better with enterprise SaaS pricing.
There are even consultants who focus on specific industries, like healthcare or education.
Benefits Of Hiring A SaaS Pricing Consultant
There are several benefits of working with a SaaS pricing consultant.
They Bring Experience & Expertise To The Table
One of the biggest advantages of working with a SaaS pricing consultant (or any type of consultant, for that matter) is that they bring experience and expertise to the table.
They’ve likely worked with other companies in your industry, and understand the unique dynamics at play. This includes things like pricing sensitivity, buyer behavior, and even regulatory pressures.
This means they can help you make more informed decisions about your SaaS pricing strategies. And that can have a big impact on your business.
They Take An Outside Perspective
Another benefit of working with a SaaS pricing consultant is that they also bring fresh eyes to your strategy.
This is important because it’s easy to get bogged down in the day-to-day details of running a business.
What’s more, it’s hard not to be biased when it comes to your own SaaS product. After all, it’s your brainchild. Of course, you believe in its value.
A SaaS pricing consultant can help you take a step back and look at your product objectively. They can provide valuable insights into how customers might perceive your solution, and what they might be willing to pay for it.
This outside perspective can be invaluable when making decisions about your SaaS pricing strategy.
They Help You Avoid Common Pricing Mistakes
Working with a pricing consultant can help you avoid some common SaaS pricing mistakes.
This is because they’ve likely seen these mistakes before (perhaps even made them themselves). And they can help you steer clear of them.
A SaaS pricing consultant can help you avoid learning these lessons the hard way. And that can save you time, money, and headaches down the road.
When To Get A SaaS Pricing Consultant
It’s natural for SaaS business owners to doubt their need for a pricing consultant. After all, it’s an additional cost.
However, the right consultant can help you price your product in a way that’s optimal for your business. And in most cases, the benefits of working with a consultant can outweigh the costs.
So how do you know that you need a SaaS pricing consultant?
Here are some cases where it makes sense to get one:
You’re A New SaaS Founder
If you’re starting a new SaaS business, then you might not have the in-house expertise to price your product correctly. In this case, it can be helpful to rely on the knowledge of a SaaS pricing consultant.
You’re Launching A New Product
When you’re launching a new SaaS product, it’s essential to get the pricing right from the start.
Otherwise, you might end up having to do a price adjustment later on, which can impact your brand and customer loyalty.
A SaaS pricing consultant can help you determine the optimal price point for your new product launch. They can also help with other aspects of your launch strategy, such as developing packaging and positioning.
You’re Trying To Enter A New Market
If you’re trying to enter a new market, a pricing consultant can help you understand the competitive landscape and find the right price point for your product.
For example, let’s say you’re selling a B2B solution and you’re moving upmarket from SMB to enterprise customers.
The prices in your new market might be higher than what you’re used to. In this case, a pricing consultant can help you adjust your pricing strategy accordingly.
You’re Indecisive About Pricing
It doesn’t have to be a big move, like releasing a new SaaS product or expanding into a new market. Having trouble deciding on your SaaS pricing is also a valid reason for seeking help.
And that’s okay. It happens.
After all, pricing is a complex topic. There are a lot of moving parts, and it can be difficult to make sense of it all.
In this case, it can be helpful to get an outside perspective from a pricing consultant or a consulting firm.
They can help you understand your options and make the best pricing decisions for your business.
You’re Losing Your Customers To The Competition
If you’re losing your customers to the competition, it might be time to reevaluate your pricing strategy. In some cases, a price adjustment is all it takes to win back your customers
Of course, it’s not always that simple. There might be other factors at play, such as poor customer support or an ineffective marketing strategy.
But if you suspect that your pricing might be the issue, then it’s worth talking to a consultant.
They can help you determine whether or not a price change is warranted and, if so, how to go about making it.
What To Discuss With Your SaaS Pricing Consultant
Once you’ve decided to work with a SaaS pricing consultant, it’s important to have a plan for the engagement.
After all, you want to make sure that you’re getting the most out of the relationship. Here are some things to discuss with your consultant:
Your Overall Business Strategy
Before anything else, you need to align your overall business strategy. This will help ensure that your pricing strategy is in line with your overarching goals.
For example, if your goal is to grow revenue by 20% this year, then your pricing strategy should be designed to support that objective.
Your Target Customer
Who is your target customer? What are their needs and pain points? How much are they willing to pay for your product?
Your target customer should be at the center of your pricing strategy. After all, your prices need to be attractive to them and should match how much they value your SaaS product.
What are your competitors charging for their products? How does that compare to your own pricing?
It’s important to have a good understanding of the competitive landscape. This will help you position your product correctly and find the right price point.
Your Current Pricing Strategy & Pricing Model
What is your current pricing strategy? What are the different pricing tiers? What features are included in each tier?
It’s also important to discuss your current SaaS pricing models. Are you charging monthly, annually, or something else? How does that compare to your competitors?
Your saas pricing consultant can help you understand the pros and cons of different pricing strategies and models. They can also help you find ways to improve your existing strategy.
If you’re launching a new product or moving upmarket, this is also your chance to discuss your new product pricing. Your consultant can help you determine the right price point for your product.
Your Goals For The Engagement
What are your goals for the engagement? What do you hope to achieve by working with a SaaS pricing consultant?
Be clear about your objectives from the outset. This will help ensure that you and your consultant are on the same page and that the engagement is successful.
Final Thoughts About Getting A SaaS Pricing Consultant
When it comes to pricing, there’s no one-size-fits-all solution. What works for one SaaS company might not work for another.
That’s why it’s so important to have a solid understanding of your business, your customers, and your competitors. Only then can you develop a pricing strategy that works for you.
If you’re not sure where to start, then working with a SaaS pricing consultant can be a great way to get the help you need. Just be sure to discuss your goals and objectives upfront so that you can get the most out of the relationship.
Looking for more guides to help you take your SaaS business to the next level? Check out our blog here.