2 days ago
- Low pricing in B2B SaaS ($20-$200/month) leads to slow growth and low impact per customer, making the business uninteresting without strong distribution.
- Pricing too low often stems from desperation but focuses efforts on low-value, high-churn customers, increasing workload without meaning.
- In B2B, price signals value: too low implies unimportance or low quality; too high targets niche markets.
- Aligning price with value and product with market is key, and also aligning founder's interest for a sustainable and interesting business.
- A higher entry point (e.g., $500+/month) attracts desirable customers, makes each new customer impactful, and ensures the business feels 'worth it'.