SaaStr · 2015-11-09
· 3859d
Competitive Pricing Strategy: Should You Match Higher Competitor Pricing to Avoid Appearing Cheap?
A SaaS founder questions whether to increase upfront pricing to match competitors' 300% higher rates, relying on lower monthly costs to justify the difference. Jason Lemkin advises pricing based on perceived competitive advantage rather than matching competitors' prices directly. The recommendation is to charge premium pricing only if offering superior features, enterprise capabilities, or security.
Metrics in this report
Competitor Upfront Pricing Differential
300%
higher
Competitor pricing compared to questioner's upfront costs