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Ask HN: Pricing SaaS based on how much it cost to develop?

2 pointsby altern8over 8 years ago
I&#x27;m trying to make sure that pricing for a SaaS is correct.<p>Is there anything like finding a price based on how much it cost to develop the service?<p>For instance, if it cost 500K, $100&#x2F;mo. at a minimum, or things like that?

2 comments

AkiraMichiover 8 years ago
No! That is not really how most people calculate how much to charge for a SaaS product. Usually, it comes down to two things.<p>First, what&#x27;s the total per-user cost? That includes, servers, storage and even the user acquisition cost. i.e. ads. Second, what is the product worth to the user in terms of it solving their problems. For example, if the product costs $10 and it saves them between $100 to $500 per month. It&#x27;s something they will likely be fine with. Simply put, it&#x27;s about the cost-to-value for the customer. How much are they willing to pay to solve their problem. It can be a $1 or even $1000 per-month.<p>I would advise you to research your potential customers and find out these things for yourself.<p>Good luck!
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downrightmikeover 8 years ago
Price is based on the value. If you are unsure of the value, ask. Or 3x cost and find the metrics for your break even point then charge that. (# users * $$ * Months) = B&#x2F;E
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