In SaaS, it is very difficult to win simply being cheaper.
The biggest burden is simply getting anyone to buy yet another web product. But within a range, is it really worth saving $2 a month for a cheaper version of Dropbox?
Most SaaS products are not commodities. A few areas start to get there — basic email platforms do compete on price, as do very low-end hosting services. But most SaaS products improve a core business process. What customers want is the best product at a fair price, that doesn’t feel expensive compared to other products they buy.
That’s the winning formula.
