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Getting Your SaaS Pricing & Packaging Right (with Dan Balcauski, Founder & Chief Pricing Officer @ Product Tranquility)

One Knight in Product

CHAPTER

Is Premium Pricing a Bad Idea?

i saw on linked in that you've said something along the lines of premium pricing is almost always a bad idea. Most of the reasons people propose a premium model can be better answered with a 14 to 30 day free trial. Premium causes a bunch of problems internally, it's difficult to move customers from free. You have this problem called the penny gap, which is, i'm paying nothing to get you to whip out your credit card and pay something. Is still a large motion. It's not necessarily any easier than if they just came in as a cold prospect. Coupled with, executives are constantly tempted by the illusion of this pool of free customers that we could potentially convert paying customers.

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