The 10-5-20 Rule To Perfecting Your SaaS Pricing

The 10-5-20 Rule To Perfecting Your SaaS Pricing

If nobody’s pushing back on your pricing…

That’s a problem.

You might be thinking:

“But Dan.. isn’t it a good thing that everyone’s saying YES to my price without resistance? Why would I want to rock that boat?”

Simply put:  

Without pushback, you’re leaving profits on the table and making your team complacent.

Two things that you literally can’t afford to be doing in the early days of growing your SaaS company.

If hearing this adds even more anxiety to your pricing decisions, let’s take a deep breath.

I’ve got you covered.

In this week’s video, I break down the 3-Step formula for nailing down the PERFECT pricing level that maximizes your profits, keeps customers happy, and creates a forcing function for you and your team to focus on creating massive value.

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At a high level, here are the 3 steps:

  1. 10x value
  2. 5% more
  3. 20% pushback

The 3 steps all build on top of each other to produce the coveted 10-5-20 rule.

But if there’s ONE thing you pull from this week’s video to start adding immediate profits, it’s this:

For the next 10 customers you talk to, raise the price of your software by 5%.

And then please… whatever you do… play it cool when they say “yes”.

Don’t kill the vibe by acting surprised 😉

The key here is to test the upper limit that your market’s willing to pay for your solution. And then keep testing until you find that line of resistance.

Might make you sweaty palmed at first. But do what you can to stick it out.

You owe it to your team, your product, and your bottom line.

Give the full video a watch and then let me know how your next prospect responds to that 5% increase.

 

  • Sidharth Jain

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