As sales tactics is one of the most important and vital aspects of the SaaS sales process, price optimization is a subsequent key ingredient.
Thus, positioning the right price in proposals is an art per se.
Here are few best practices taken from Nick Nolenda‘s excellent price optimization report. The practices are adapted to the SaaS world.
Here is a brief summary (tl;dr ):
1) Remove the $ sign (it reminds the pain of paying).
2) Remove the comma when possible (2599/mo. instead of 2,599/mo.
3) Use precise high numbers as Anchor:
4) Have an Anchor price- Always start with high price
5) Start negotiation with a high precise number.
6) Visually Distinguish Higher Price Comparisons when you compare your price to a higher price.
7) Offer a decoy package (the economist experiment)
8) Expose people to any high number (another form of anchoring)
9) Shift focus towards time-related aspects
10) Use the rule of $100
11) Provide a reason for the discount
12) (VP level tips) Use more frequent (yet smaller) price increase
SaaS Pricing Psychology: the entire list
1) Remove the $ sign (it reminds the pain of paying).
2) Remove the comma when possible (2599/mo. instead of 2,599/mo.).
Besides font size and kerning, another consideration is punctuation. Researchers found that removing commas (e.g., $1,499 vs. $1499) can influence people to perceive your price to be lower
Continue reading How to increase your deal value and close $50k/yr. + deals easily