7 Tips for B2B App Pricing Strategy
Pricing is rarely considered as a playing field, but rather as a slippery slope where extra experimenting is never encouraged. However, it can become an effective part of your marketing strategy, especially for B2B SaaS solutions. Consistent implementation of the following tools will definitely conduce to arouse interest, attract new consumers and increase sales.
1. Set a competitive price.
There are a few pricing methods which you can focus on. Which one to choose? First learn the market precisely: complete the analysis of competitors and substitutes, decide which market structure you have to deal with: monopoly, oligopoly, competition. Make sure you are well-aware of the core brand message you are supposed to deliver.
Further, offer a competitive advantage which others don’t have. For instance, if your product is exclusive, leverage value-adds and consider setting a slightly higher price. Otherwise, entice customers with discounts and special offers since the product does not stand out from the crowd.
2. Consider tiered pricing plans.
This is one the most common practices in the kingdom of SaaS. You can include some extra features or vary the levels of the service offered for different pricing plans. Define what is worth additional value and never be shy or afraid to proffer a special price for that. For example, you may check our API2Cart pricing plans: there are different packages for depending on the amount of API request and connected stores as well as another tier with webhooks.
Another valuable tip here: visualize. Demonstrate your potential clients clear differences between the packs to make sure they realize what they get. Think about graphs, pie charts or tables.
3. Include a free trial period.
The next typical practice for SaaS products is letting customers try your product before they actually buy it. Plan how your buyer’s journey will look like and include a free trial (mostly a 7-, 21- or 30-day period). Set up an autoresponder for everyone whose trial is about to expire with a suggestion to renew and subscribe to a full pricing package.
4. Use psychological manipulations.
It is classic and as old as time but still works perfectly. There are multiple tactics depending on your goals. If your clients mostly look for a bargain, consider using magical 7s or 9s (e.g. $97 or $99 instead of $100) and experiment with colors and font size. Besides, keep in mind the BOGOF technique: buy one, get one free.
On the contrary, if your product is of a premium class, use a ‘prestige’ pricing method. Put rounded numbers ($100 rather than $99.99) as they are more fluently processed and encourage buyer’s trust.
5. Share additional bonuses.
Everybody loves receiving gifts. Each time clients make a purchase, surprise them with a free bonus like ebook or access to limited-edition features. Not only does it make the customers more loyal, but also brings additional value to your product. The important moment here is to make your gift feel like something valuable and worthful.
6. Promise a cash-back.
This may appear the last point in considering the purchase. A money-back guarantee removes all the objections in favour of buying your product. If you offer high quality, there is a little risk you’ll have to return the money, however, you will be perceived as a reliable provider. Otherwise, simply do not release your product on the market.
7. Stay hungry, stay foolish.
Steve Job’s legendary quote is here for a reason. A theory is good but it won’t bring you any bright results. Experiment, keep your mind open, be creative. Test various methods and price points, analyze, and always try again.
Hopefully, this list will come in handy once you start planning your pricing strategy. By the way, API2Cart API has different methods to work with prices from stores:
- product.currency.add - assign a currency to a certain product
- product.currency.list - retrieve the list of product’s currencies
- product.price.add - add some prices for the product
- product.price.update - update some prices of the product
- product.tax.add - assign a tax class and rate to a certain product
In case you have any particular questions or want to schedule a free trial, do not hesitate to contact us.