It’s a question every SaaS company must ask itself: “Should we publish our pricing?”
It appears that many top SaaS companies are answering with a “no.” A recent study showed that only 21% of SaaS unicorns (SaaS companies with a billion-dollar valuation) publicly publish their pricing.
So what’s the reason so many SaaS companies have moved away from pricing transparency?
Well, many companies believe that transparent pricing almost always leaves money on the table, especially in more prominent deals.
However, that couldn’t be further from the truth. The fact is B2B buyers these days are quite savvy. Research shows that buyers want as much information upfront as possible about a vendor before reaching out.
If the price isn’t listed on the SaaS vendor’s website, buyers will find the price equivalency elsewhere by doing research, which usually leads them to a competitor’s site or third-party industry-comparison sites. Companies that don’t list pricing are leaving it up to the customer to contact a sales rep to obtain that information.
What if the info they gather on their own is wrong?
Clearly, having your customers get pricing information on your terms is the better option.
SaaS companies that list pricing on their websites are in control of the means by which the customer obtains pricing info. Pricing transparency helps establish a relationship of trust with the client from the very beginning of the relationship. Your sales reps will come across to buyers as solutions experts who help put together a customized deal for their specific needs, rather than the pushy salesperson who tries too hard close them by offering “special pricing” when the standard pricing isn’t even listed.
Other benefits of pricing transparency include a shorter sales cycle. Most SaaS startups run with a lean staff. Pricing transparency takes out a step in the sales cycle around pricing. Without it, sales reps are forced to go to finance to get pricing for every single deal, which slows down the process. It also ends up being a colossal waste of time and resources if the customer’s budget is not in the ballpark of the price tag for the solution.
Everybody knows what a massive productivity loss chasing unqualified leads is for sales professionals. Pricing transparency enables sales to focus on customers whose budget better aligns with your products.
Transparency in your business is not something you do some of the time for certain things.
At Harbinger, we believe in being transparent 100% of the time, and that starts with our pricing. In fact, you can find our pricing information right here.