Until now. I’m sticking two fingers up to the stigma surrounding pricing and I’m lifting the lid to reveal what goes on, behind the scenes, when organizations like Process Street change their SaaS price model.
I know. I’m brave, right?
Over the last few weeks, I’ve coerced and cajoled the Process Street pricing team into sharing some of the biggest pricing lessons we’ve learned (sometimes the hard way), since we launched in 2013.
I thought the best way would be to look at the pricing pages of the SaaS 250 — a list compiled by Montclare of the most successful SaaS products in the world.
To see this data in the form of an infographic, you can skip straight down to the bottom on this page.
Before we start — why did 80% of companies not have pricing pages?
Before jumping right in, it’s interesting to note that of these 250 companies, only 48 had pricing available. The rest had pricing available on request by contacting the sales people.
Jason Lemkin, CEO and Co-Founder of EchoSign, says that most companies have a very good reason for this. Writing on Quora, he outlined 5 key reasons you might be better off not showing pricing on your website.
Deals will get more complex as you grow. Some day you’ll do a deal so large and complicated it wouldn’t have been able to be expressed in $/user/month. Products with integrations and add-ons will be priced so confusingly, it’s simpler to just get them on the phone to sales.
Discounting will become difficult. With a preset rigid pricing structure, you’ll put off enterprises. Jason says “Your champion will require a discount. Then, it will get sent to procurement. Procurement’s bonus will be tied to the next discount they win. If you have rigid pricing, you’ll blow the deal.”
A $700k deal is sold differently to a $100k deal. When it means the difference between an everyday deal and a huge account, you’re going to treat the customers differently. Pushing both down the same track is risky because you want to make sure that the big customers are on the phone to sales straight away.
Enterprise customers just want to buy. Jason says that price doesn’t matter for enterprises. More than 80% of the time, they just want to get set up with a solution as efficiently as possible. Price comes after features.
Looking as if you’re ‘all about price’ is a bad look. Pricing can make your product look cheap, and not enterprise-oriented. Jason says, “If your competitor says “Call Me” and appears more or equally enterprise-grade and trustworthy — your transparent pricing may say “cheap”. “
So, 202 of the SaaS 250 have good reasons for not being transparent with their pricing. Let’s look at what I found when analyzing the SaaS pricing pages of the remaining 48.