no matter what Conditions, the value of SasS has always been a challenge and always will be. Underpricing your product, using a pricing model that doesn’t work for your ICP, not self-registering, or not offering the wrong features as add-ons – all of these pricing and packaging issues (and many more) can cost you a lot of revenue. .
But the economic downturn added another element. Common wisdom tells SaaS founders to adjust their pricing based on changing market conditions, but is that really good advice for SaaS founders? As far as I can see, not for the most part.
Undeniably, an economic downturn will change purchasing behaviors and decision-making processes for some of your customers. But it’s a mistake to think that this means you’re overpaying for your product in the current market.
In fact, most of the budget cuts these days are, unfortunately, big ticket items (staff). SaaS is relatively just a drop in the bucket. However, this does not mean that SaaS is completely safe. Companies are looking to trim the fat on their teams, often rethinking their entire work processes and evaluating which software will help fill the gaps. This is especially true with low-code/no-code products where customers can work with less expensive engineering resources. As such, SaaS products are just as much a part of the equation.
Thinking about pricing and packaging changes now will help you thrive when things pick up again.
When you see your numbers not going up (or maybe even going down), it can be very tempting to start changing your prices, offering discounts, or rethinking your strategy. But before you start discounting, do a careful analysis. If your sales numbers are lagging behind your expectations, there’s another question to ask: What? Really Confused about your SaaS product or its pricing?
It is important to differentiate here. The real problem is how much you value your product. Is the market influencing demand for your product? Or is there a problem with the product? Each of these are completely different tests with different prescriptions.
