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SaaS pricing model best practices?

Hey everyone,
Building a niche market software to automate catering kitchen planning/ reporting (wife owns a catering business so we're building for ourselves first).

It's a SMB SaaS type product. Customer base is very cheap at the small end and at the larger end, this likely (at least for us) frees up 1-2 FTE or more per $1M in sales and should increase margins and sales conversions. Existing products take 3-6 months to implement and UI is a bit "Microsoft-office" like in look and feel (powerful but confusing).

Was wondering if any of you had much experience with more data-driven SaaS models at the small business side of the market. Trying to map cost impact (servers, etc) of going freemium and then pricing models after (e.g., sell lots of add-ons/ expansions vs. more simple 3-5 tiers of pricing vs. more usage driven models)

Any thoughts? Are there resources you'd recommend?

3 Replies

Dan Abdinoor
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Dan Abdinoor Entrepreneur
Read everything from David Skok, VC and SaaS expert:
Jonathan Murray
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Jonathan Murray Entrepreneur
Co-Founder / CEO of MyVR.com
Couldn't agree more with the above link by Dan Abdinoor.


Alan Peters
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Alan Peters Entrepreneur
VP Product and Technology at BusinessBlocks
Hi Vijay I would look at competition and then there's a good SaaS financial model template shared by investor in ZenDesk. I can send along when I am not on the move. Also am happy to be a sounding board if you'd like to talk. I really like SaaS and Small business markets. Cheers
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