SaaS Companies Can Charge As Much As They Like If…

SaaS. Software as a service. Past written pieces link to the idea of: you’re either ramping up the software or the service. One of the two needs fixing if sometimes you, the CEO, feel like growth is slowed down.

Here’s the deal with service: price sensitive people don’t need it (though some complain about the lack of it) and people above medium net worth are okay with paying a premium for the service.

It sounds easy when we put it like this but we also know the efforts needed to provide good service.

The consequence, though?

Charge me as much as you like but promise me perfect service

That’s something a certain type of user might think and if it’s within your reach to target her (that’s predicated on your company’s product, of course) — make sure you aim for this.

Website hosting costs as cheap as £0.80 per month. However, WPEngine gets away with prices like $115/mo or $290/mo.

But apparently they call you when you’re about to make a mistake, if that’s the case. Needlessly to say, they are there to be advisors for hosting-service-related moves.

So how do they get away with it? It’s easy, top notch service — but it’s also not for everyone. For those who have the need and the means, they’re there.

And then it’s no wonder why WPEngine raised $300M.

Here’s the caveat: when you go down the “charge me as much as you like but promise me perfect service” you have to be able to stomach the naysayers. But that’s a small price to pay 😉


About Ch Daniel

I run Chagency_, an experiences design agency — we help SaaS CEOs reduce user churn. I write daily on this topic and in similar areas. Here are my best pieces.

If I’ve helped you, follow me here and reach out: LinkedIn | Twitter | Email | Quora | YouTube 

I’ve also founded an app that went 0-200K users in its 1st year — The Legit Check App. See everything I do here: Chdaniel.com

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