SaaS Pricing Strategy: The 10x Rule (opens in new tab)

I agree that the pricing for B2B apps should be "a no brainer" for your customers. Although sometimes it's hard to quantify (put into dollars) the value you provide. Maybe you just remove frustration, without saving much time or money. I wrote an article the other day about all the paid services I use and how little correlation there is between the amount I pay for each and the value I get: http://www.manuelflara.com/thoughts-on-pricing-for-developer...

Apologies for the blatant plug but for anyone interested, I also just wrote about another SaaS pricing strategy yesterday here: http://technicalmarketing.io/cro/saas-pricing-technique-deco... I figured it might be helpful for some people here.

The key message is not the 10x rule, it's quantifying the value you create for your user. Further, the supporting message is to actively price anchor against that value.

Very well put, which is why it is extremely important for startups to actually figure out the value which they can create for their customers.

This is easy said than done though, depending upon what business you do.

Normally, I like to test pretty much everything (start with 10x, compare with 9x/11x maybe) but when it comes to prices, I personally feel A/B testing them is a bad idea.

can someone help me understand this? does it mean to simply charge 10x the cost, thus 10x the margin?

does a metered pricing fall into value? meaning if someone generates 1000 reports should it cost them 100 dollars? what if it's an all or nothing situation. the value comes from when they receive most of the 1000 and no value when it falls lower than 300? does a metered pricing make sense in this case or does a monthly subscription makes sense?