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Scalable Pricing
Article

Scalable Pricing

A Key Tool for SaaS Success


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Editorial Rating

7

Qualities

  • Applicable
  • Well Structured
  • For Beginners

Recommendation

The pricing choices software or SaaS providers make can leave potential revenue untapped – or boost sales and attract new customers. David Skok – a five-time entrepreneur and current VC investor – suggests using scalable pricing models that match the value individual customers extract to the price they pay. Blogging at forEntrepreneur, Skok outlines the use of scalable pricing in clear, actionable terms: what it is, how to implement it and how it can benefit your business. getAbstract recommends Skok’s useful article to SaaS entrepreneurs looking to ratchet up revenue or combat customer churn.

Take-Aways

  • SaaS and software entrepreneurs can use multiaxis scalable pricing to increase revenues from current customers and attract new ones.
  • Scalable pricing acknowledges the fact that willingness to pay varies from user to user.
  • Users differ in their willingness to pay depending on the amount of value they derive from the product. Value-based pricing reflects this fact.

About the Author

David Skok, a five-time entrepreneur turned venture capitalist, writes the forEntrepreneurs blog.