Why SaaS Companies Should Display Pricing On Their Websites

Sanjay is a Technologist and founder of Vervotech, a SaaS-based accommodation data provider. He also founded techspian.

Today’s buyer is habituated to transparency. They research, compare and analyze before shortlisting vendors online. Influenced by their daily product purchase experience, B2B buyers expect the same experience, like immediate access to a product’s pricing and features, clearly stated on an organization’s website.

Most buyers want to understand price as part of their self-discovery journey. When the cost is hidden, it creates friction and work for the buyer. Those who are determined to know your prices will likely be able to find other customers or information online, like on review sites like Capterra, G2 Crowd, etc.

It’s like checking Glassdoor before negotiating the salary for a job in a new company: You check the salary range, perks and benefits of the role and then get a rough idea of how much salary you can expect. That way, you won’t carry a feeling throughout your employment that you could have received higher pay.

While purchasing, customers want to be sure that the money they are paying is the same as paid by their industry counterparts. Hence, if you publish the pricing as early as possible in your journey, you will be able to garner more trust and position yourself as a startup with solid values. Also, if your product has a decent and sizable market and competes on price, not listing prices on the website may send a wrong signal that your prices are too high.

Even if the product is judged by its features and capabilities, new buyers keep their budget front of mind. In other words, the lack of pricing transparency can cost SaaS companies money. Instead, SaaS companies can enable users to be self-decisive in buying the product by keeping the pricing transparent.

Here are some other advantages of making pricing public.

• Building Trust: Transparency in pricing, and in general, helps when your products are well known in their category and have strong word of mouth. Users will subconsciously develop a sense of trust and helpfulness about your organization in their minds.

Helping Users Avoid Human Intervention: Today, many customers do not want to interact with sales teams; they want to evaluate and make decisions on their own time and schedule. In this state, having a pricing page eliminates the number of human interactions.

• Gaining Quality Leads: Buyers will only drop an inquiry request after they think they can afford your product and are convinced with its value proposition. You will likely receive more qualified leads, leading to a quicker sales cycle if customers’ biggest question is answered upfront.

• Implementing A Self-Service Model: Since your pricing is published already, and you have a solid and convincing messaging, you may no longer need a human to sell the product. Customers could be able to subscribe to your services directly from the website.

• Reducing Sales And Marketing Costs: Transparent pricing makes the sales process more manageable. With reduced sales and marketing operating costs, the total customer acquisition cost (CAC) may also go down.

In a nutshell, the more transparent your price is, the more trust you build for your brand and the less money you spend on customer acquisition.


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