7 Ways a SaaS Pricing Consultant Can Benefit Your SaaS in 2024
The SaaS market is competitive, so it’s a tightrope act to determine how to make the most money and attract and retain customers.
The equation is complicated, and the answer depends on many things, such as:
- Subscription models,
- Competitor tactics,
- How customers see value, and
- Market trends.
But what if you had a pricing expert on your side? Someone who could examine these factors and devise a data-driven pricing plan that works for your SaaS offering?
These people help set prices for SaaS and are called pricing consultants.
This article covers seven powerful ways a SaaS pricing consultant can help your SaaS reach its full potential. We will discuss how they can help you:
- Improve your pricing strategy,
- Make more money,
- Get more customers, and
- Grow your business in a way that lasts.
Read on to learn these helpful tips for making your SaaS successful in a space where prices constantly change!
What is a SaaS Pricing Consultant?
A SaaS pricing consultant is a person who helps companies decide how much they should charge for their software services. They help choose the best pricing models and methods to make more money. Businesses can figure out how to set prices fairly and competitively with their help.
Roles and responsibilities of a SaaS pricing consultant include —
- Analyzing market trends
- Evaluating competitor pricing
- Advising on pricing strategies
- Optimizing pricing models
- Maximizing revenue
- Considering customer value and market dynamics
- Aligning pricing with business goals
- Experimenting with pricing and analyzing data
- Staying updated on industry trends
You can hire pricing experts alone or with a business that knows how much SaaS costs.
7 Benefits of Hiring a SaaS Pricing Consultant for Your SaaS
Struggling to find the correct price for your software as a service?
An expert in SaaS pricing can be of great use!
Hiring someone who provides pricing strategy consulting services is a sensible option for the following reasons —
1. Get an Outsider's Perspective on SaaS Pricing
By getting a SaaS pricing consultant, you can consider having a new pair of eyes examine your SaaS pricing approach.
A consultant is not burdened with the internal prejudices and assumptions that you might have. That’s why they can objectively analyze your company and the market.
It helps them reveal any opportunities or defects you might overlook during your analysis.
2. Explore Expertise in SaaS Pricing Models
Pricing structures for software as a service (SaaS) can be complicated, with alternatives such as —
- Subscriptions,
- Freemium, and
- Pay-per-user.
A consultant can assess your business requirements, target audience, and product characteristics to make the most suitable recommendation.
3. Grab Customized Pricing Strategies
With SaaS, a one-size-fits-all price model is unworkable.
An expert consultant will listen carefully to your company's specific needs and objectives before making recommendations. After examining data on client behavior and competitor pricing practices, they’ll develop a personalized price strategy that maximizes your value offer.
So, you’ll have a custom pricing strategy designed to perfection, ensuring it catches the attention of your target audience and accurately portrays the value you provide.
4. Maximize Revenue and Profitability
Let's face it: Your pricing directly impacts your bottom line.
You can get help from a consultant to figure out the sweet spot between underpricing and losing profits. They’ll utilize data and market research to select the optimal price to maximize your income and profitability.
They’re like personal coaches who specialize in helping you increase your profits through strategic pricing.
5. Receive Expert Guidance in Pricing Negotiations
It can be challenging to talk about prices with possible customers. A good adviser can help you get what you want in a deal. They'll help you develop strong negotiating strategies based on market data and customer wants.
They can also teach you how to communicate effectively and present your value proposition. It’ll help you win more deals and get better prices on all of them.
6. Implement Advanced Level Monitoring and Optimization
Your plan for setting prices shouldn't be unchangeable like set in stone. A consultant can help you set up an ongoing optimization and monitoring method.
They’ll use tools for data analytics to keep an eye on —
- How do customers act?
- How much do other companies charge?
- Market trends of SaaS?
They'll suggest changes to your pricing system on the basis of this information so that you can adapt to changing market conditions and maximize profits.
7. Avoid Common Pricing Mistakes
SaaS pricing is a minefield of potential errors.
Even small mistakes, like charging too little for what you're worth or making your price too complicated, can significantly affect your bottom line.
A pricing expert can help you avoid these problems by using their knowledge and experience in the field. They'll find possible pricing problems in your current pricing plan and offer new ones to help you avoid common mistakes and confirm that you're ready to succeed.
When Should You Get a SaaS Pricing Consultant?
How much should you charge for your great SaaS product?
Do not be afraid—you’re not alone. Setting the price of your SaaS can be like putting together a crazy puzzle with a million pieces.
But what if you had a secret tool that could help you break the code, I mean, SaaS pricing experts?
Many businesses wonder if it's time to bring in a pricing consultant.
Here are some signs that if you hire pricing consultants, it can be your secret weapon for success —
1. Launching a New Product
Setting the right price for a product when it is launched is important if you want to attract early adopters and keep your business going.
An expert can help you determine the right price to charge on launch day.
They help in these ways —
- Market Research and Audience Analysis: They’ll examine the market and the people you want to buy from to determine how much people are willing to pay for your product's benefits and value.
- Competitive Pricing Analysis: They’ll investigate how your competitors set their prices to ensure your product is priced competitively.
- Optimizing Your Pricing Model: Based on the features and needs of your customers, they'll tell you which pricing plan works best (subscription, freemium, pay-per-user).
If you set the right price from the beginning, you'll get the right customers and grow steadily from the day you bring your product to the market.
2. Understanding the SaaS Pricing Structure
It can be challenging to figure out how much SaaS costs because there are so many choices. An expert can explain these choices and help you pick the best one for your business.
This is how they can help you:
- Explaining Pricing Models: They’ll tell you what's good and bad about each pricing plan, such as subscription, freemium, and pay-per-user.
- Matching with Your Goals: They'll think about what you want your business to do (like make a lot of money, get customers quickly, etc.) and then offer the best way to set prices to help you reach those goals.
- Looking at Your Product: They'll examine your product's function and advise you on pricing it based on its importance.
3. Reviewing Your Pricing Structure
If your prices are incorrectly set, you can get help from pricing experts. If they think your prices could be better, they’ll look at them and make suggestions.
They scan your product information first. Then, they examine customer turnover and conversion rates to see how your prices affect your business. After that, they'll see what other people in the same business are doing. They'll also look at your rivals' prices and strategies to keep you in the game.
Lastly, they might suggest trying out different prices. They'll watch how customers respond and help you adjust your prices accordingly.
4. Strategizing with Fewer Customers Than Your Rivals
Your SaaS may be a scrappy company with a powerful product. Still, you haven't yet reached the big guys' customers in the competitive market.
In this scenario, pricing consultants can help in different ways. For example, they support value-based pricing and help you price your SaaS according to its unique value proposition. It lets you compete on value even with established brands with larger marketing resources.
A pricing consultant may segment your audience and offer pricing based on client wants and budgets. It’ll allow you to reach more customers without hurting your bottom line.
Their pricing strategy will prioritize customer acquisition and user growth. Introductory offers or tiered pricing may attract new consumers.
Don't worry—they'll keep your business sustainable while you grow your customer base.
A consultant can help you compete well even with a smaller customer base by helping you focus on the value you provide and develop a smart way to set prices. It’ll set you up for future success.
What You Should Discuss With Your SaaS Pricing Consultant
You make a great choice when you decide to hire a SaaS pricing expert.
After that comes the most crucial part: Meeting those experts face-to-face for the first time.
Discussing your business and goals in detail is vital to getting the most out of this collaboration. Therefore, your consultant can help you develop a pricing plan that brings out the best in your SaaS.
To secure a good working relationship, here are some essential things you should discuss when hiring a product pricing consultant —
1. Business Strategy
The first and most important thing to remember is to look at the big picture!
Describe your long-term goals for your SaaS regarding growth, market share, and making money. The expert will use this to determine how pricing can help your business reach its goals.
It's like setting the direction for your pricing trip.
2. Target Customer
The question in this whole process you must not avoid is who you want to use your great SaaS, which would quickly help you identify your ideal customer profiles.
It is imperative to know your target customers, what they want, and how much money they have.
Based on this information, the consultant will suggest pricing models and strategies that will work for your target consumer group. They'll ensure your prices speak straight to your ideal customer, like a customer whisperer.
3. Your Competitors
When it comes to prices, knowledge is power! By gaining knowledge, we mean talking about your main competitors.
Try to find out the answers to these two questions —
- How do they figure out their prices?
- What are the good and bad things about them?
The right pricing expert will look at this competitive landscape meticulously to make sure that your pricing strategy sets you up for success.
They are like your pricing military analyst who helps you develop a winning plan.
4. Pricing Strategies and Models
There are many ways to set prices, payment plans, and subscription models.
Ask your consultant about the various models so that you can understand if they can set you up with a proper model and explain how that model might work with your products and customers.
So, the pricing expert will help you choose the best-priced tool for the job.
5. Goals for the Engagement
When you sit with a pricing consultant to discuss your goals, make sure you know these:
- Why do you want to work with a consultant?
- Is it to bring in new people, make more money, or improve the way you set your prices?
Giving your SaaS pricing advisers clear goals will encourage them to focus on your business's most critical issues. Therefore, you should create a pricing roadmap to ensure your partnership goes smoothly and successfully.
Final Thoughts
A single pricing approach won't work in the constantly changing SaaS landscape. Surprisingly, what makes your competitor grow might stop you from moving forward.
That's when a SaaS pricing consultant can help you. Do not just think of them as number crunchers but as revenue architects. They use data analysis like a scalpel to examine market trends, competitor plans, and customer behavior.
This means you can make a pricing plan that works for your ideal customer, which will help you make the most money and get high-value users.
Are you ready to stop guessing prices and use an SEO-powered scientific method? SaaSSEO.Agency knows how crucial organic visibility is for getting high-value customers for SaaS companies.
Let's collaborate to develop an excellent pricing strategy and SEO plan to help you succeed in the long run!
Frequently Asked Questions
1. How much does a SaaS Pricing Consultant cost?
Most SaaS pricing strategy consultants charge $150 to $500 per hour. Consulting services, on the other hand, can be expensive depending on the size of the company, the type of work being done, and the consultant's expertise.
2. What makes a good SaaS Pricing Consultant?
These are some of the most essential traits of a good SaaS Pricing Consultant:
- Industry Knowledge: A good consultant knows the unique problems and chances of pricing in your SaaS business.
- Track Record: Look for experts who have helped SaaS companies reach their pricing goals in the past.
- Data-Driven Approach: Instead of just giving general tips, they should use data and analytics to help them make decisions.
- Pricing Strategy Development: They can make pricing models based on facts specific to your business goals and target market.
- Pricing Optimization: They should know how to make your current pricing system more profitable by improving it.
- Market Research and Competitor Analysis: To set competitive prices, they must know how your customers act and how your competitors set their prices.
- Communication & Client Management: They should easily explain complicated pricing ideas and work well with your team.
- Experimentation and A/B Testing: They advocate testing different pricing strategies to refine your approach for maximum impact.
- Staying Up to Date: A good consultant constantly learns about new business trends and the best ways to price SaaS.
You'll have a better chance of finding the right SaaS Pricing Consultant with these traits if you look for one.
3. Can a SaaS Pricing Consultant guarantee results?
There are a lot of things that can go wrong, so SaaS pricing consultants can't promise exact results. However, they can help you reach your goals and give you expert tips on how to set prices better.
4. What factors do SaaS pricing consultants consider when advising on pricing models?
When advising you on the best pricing plan for your business, SaaS pricing consultants look at many different factors.
Here is a list of some of the most important things they look at:
1. Target Market and Customer Value
- Customer Needs and Willingness to Pay: Consultants will know your potential customers, what they want, and how much they’ll pay for your SaaS.
- Market Research and Competitive Analysis: They’ll examine how your competitors set their prices and how customers in your target market behave.
2. Your Business Model and Goals
- Cost Structure: Knowing your set and variable costs make figuring out your break-even points and best prices easier.
- Business Goals: Your pricing tactics will affect whether you want to get new customers quickly, make as much money as possible, or grow quickly.
- Features and Value Proposition of a SaaS Product: The pricing tiers are based on the value proposition of your key attributes and any extra tiers or functions.
3. Pricing Model Options
- Subscription Model: Consultants will consider different types (flat, tiered, usage-based) based on your product's features and customer needs.
- Freemium Model: If a freemium model is viable, they'll analyze the best features to offer for free and pricing for premium tiers.
- Pay-Per-User Model: This might be suitable for products with variable usage. Consultants analyze user behavior to set optimal pricing.
4. Long-Term Growth and Sustainability
- Customer Lifecycle and Churn Rate: Consultants will consider pricing strategies that attract and retain customers in the long term.
- Scalability of the Pricing Model: The chosen model should be scalable and adapt as your business and customer base grow.
- Flexibility and Experimentation: A/B testing different pricing options helps refine the model for optimal results.
5. Additional Factors
- Market Trends: A good consultant stays updated on industry trends influencing pricing strategies in your specific SaaS niche.
- Technical Considerations: Any limitations in your SaaS platform's billing or subscription management system might affect your pricing model options.
A SaaS pricing consultant can help you choose the best pricing plan for your business by carefully looking at all these factors.
This model will help you make more money, grow your business, and find and keep good customers who see the value in your SaaS service.
5. How can you choose the right SaaS pricing consultant for your specific needs and goals?
The steps below will help you find the best SaaS pricing consultant for your wants and goals:
- Make what you want your pricing plan to do very clear. Figure out precisely what you need help with or where you can improve.
- Find experts who know how to price SaaS well. Consider how knowledgeable, experienced, and successful they have been in helping businesses like yours in the past.
- Look at consultants' profiles, websites, and case studies to learn about their approach, methods, and past results.
- Get recommendations from people in the same field or the consultant's past clients. This can give you helpful information about their skills and success.
- Check how well the consultant works with and communicates with customers. Make sure they know what you want and are willing to listen to your questions and worries.
- Talk openly about costs, the scope of the job, due dates, and deliverables. Guarantee there are no secret fees, and the terms fit your plans and budget.
- Set up meetings with the consultants you've chosen to discuss your wants in more detail. Ask them specific questions about how they plan to solve your problems and how they’ll do it.
After taking these steps, you should be able to find the right SaaS pricing consultant to help you reach your goals.
