I started an SaaS startup that is aimed at very specific hosting for civil engineers. I do have a basic product but to have something ready to general public I need additional 6 months and input from the engineers. The current costs of running the software are very low (~$100 a month). I developed the project in my evenings so there is not fixed cost there either.<p>I am talking to one engineering company as a partner and we are currently discussing how much I should be charging them.
It is crucial for me to be able to have at least one company to partner with. I need them to provide me feedback on the features, suggest new ones and use their name on my website as a partner.<p>My question is how much I should be charging them such that they move from the legacy vendor to me. I could go as low as $0 given my very low running costs but my worry is that in a 6 months time when my services becomes popular I have to continue to service them while I will have multiple other clients that actually pay. Any ideas how I can structure the pricing ?
One common recommendation for SaaS is never to over unlimited pricing. I'd see charging $0 as unlimited. Limiting that, e.g. to the first year, seems fine though. I'd still ask for $50/month. The difference is that any invoice amount means they (e.g. product manager) needs approval, signatures, review. That's a higher commitment from them while the amount is hopefully nothing compared to whatever they pay for the legacy software.
I think the main question is: do they need your product?<p>It seems to be the case, which is why I strongly advise you to not make it "free" no matter what feedback, help or features you think they'll bring to your project.<p>Instead, think of them as your first customer. You might get 100 more or only one. Charge them the cost of the software and foster a special relationship with them, maybe in terms of support or beta features, whatever works for you.<p>Good luck!