SaaS Product Pricing Strategy

You should start mentioning your competitors when discussing or showcasing the price of your product with potential customers as a SaaS business, B2B business or agency owner, it might seem counterintuitive, but here's why...
This is a strategy I’ve seen work effectively and have personally used in my experience working with a SaaS business.
Imagine you’re serious about ramping up your business’s social media efforts and are ready to invest in a premium platform.
You know
-LinkedIn can help you generate leads,
-Twitter can expand your reach, and
-Facebook offers robust targeting options.
But which one should you choose?
Now, consider a comparison page that lays out the pricing for LinkedIn, Twitter, and Facebook, highlighting the unique benefits of each platform.
Such a page doesn’t just provide price points; it also justifies the cost by showcasing each platform’s unique advantages.
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Doing this not only justifies your price but it also takes the research burden off your customers.
Doing this can also leverage a psychological principle known as the Contrast Effect.
The Contrast Effect is a cognitive bias where people's perceptions are influenced by comparing two options.
If your customers see your product alongside a more expensive competitor, your pricing may appear more attractive, especially if you highlight your unique selling points.
Let’s say your SaaS offers a project management tool.
By showing how your pricing compares with that of a higher-priced competitor like Asana or Monday.com, and by emphasizing your tool’s unique features, you can make your product seem like the smarter choice.
This strategy not only builds trust with your customers by being transparent but also positions your product as a valuable alternative, making it easier for them to make a decision.