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by reubenswartz 2244 days ago
This is a helpful article and I would add to the general "value-based" pricing discussion:

Price is limited by perceived differential value.

So if there's value that the buyer doesn't perceive, it doesn't count. (Often, there's value that the buyer perceives and you don't in the SaaS world.)

If there's perceived value, but you charge $1000 and someone else offers the same perceived value for $100, it's going to be hard going.

This feeds back into understanding your customer subsegment really well. In the example above, perhaps the general market thinks you are at -$900, but for your niche, there are some critical aspects that make it worth much more.

Another corollary is to offer different price points, all aligned with how the buyer perceives value, such that you're happy with whatever choice they make.