      Tomasz Tunguz Blog · 2013-05-28
      · 4755d
    

Managing Channel Conflict in SaaS Pricing: Cost-Based vs Value-Based Strategies

This article explores channel conflict in SaaS pricing, where startups must serve both price-sensitive individual users and enterprise customers willing to pay significantly more. The author presents two primary strategies to manage this conflict: differentiating products through features and support, or creating separate brands/websites for different customer segments.

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Metrics in this report

Employee Time Value Multiplier

50%

higher

larger organizations vs individuals

Individual Paid Tier Price Range

5-40$

per month

typical SaaS startup pricing

Payroll Cost Difference

50%

increase

5,000-person vs 10-person organizations