What do consumers prefer more – lower prices or higher quality?

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.

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Published on August 9, 2018

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