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    What would be the optimal pricing model for the sustainability of a SaaS application?

    Mizanur Rahman
    13 replies

    Replies

    Derek
    Price doesn’t actually matter. Profit does. 💰 Business sustainability is gained by constantly watching your costs and growing your sales. For SaaS, recurring billing is the norm, but there’s plenty of one-off apps making piles of cash (like Sendy) so there’s no perfect model. You could have a loss leader model with totally free software and see add-ons. Look at Epic Games with Fortnite. Millions in dev and design work given out for free. Long story short, optimize for profit and sales not a specific dollar figure. 💸
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    Romio
    I think it depends on the problem you are solving and the targeted audience. Still, I think there are multiple ways. In the early stages, charge the bare minimum. And then once the user base reaches the utmost running cost, try different pricing and find that "point". (If the product is worth it, do not settle for the bare minimum) Or try custom pricing for everyone. In this way sometimes a few big clients is enough to keep things afloat. Like I said in the beginning, it's tricky and the most exciting part. Sometimes annoying too. One time payment with basic use is also good for attracting a large audience I beleive. Like once.com planning
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    Nikhil Kotcharlakota
    @Mizanur_Rahman the most sustainable pricing model is when your price metric i.e units by which you price your product, is aligned to your value metric, i.e units by which the customer gains value.
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    Meshy
    Tiered Pricing Pros: Flexibility to serve different market segments; ability to upsell customers as their needs grow. Cons: Can be complex to manage and communicate; choosing the right feature set for each tier is challenging.
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    Eliza Crescini
    The optimal pricing model for the sustainability of a SaaS application will vary depending on the specific application and its target market. However, there are some general principles that can be applied to choose the right model. One important consideration is the value that the application provides to its users. If the application solves a critical problem or provides unique value, it is likely that users will be willing to pay a premium price. In this case, a subscription model or a usage-based pricing model may be appropriate. Another important consideration is the cost of developing and maintaining the application. If the costs are high, it is important to choose a pricing model that will generate enough revenue to cover costs and ensure profitability. In this case, a subscription model or a tiered pricing model may be appropriate. Finally, it is important to consider the competitive landscape. If there are other SaaS applications that offer similar functionality, it is important to price the application competitively. In this case, a freemium model or a value-added pricing model may be appropriate. Hope it helps :)
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