3 Surprising Consequences of Relying on Competitor Pricing for Your B2B SaaS Product (Plus, When it Can be Used Effectively)

Don't rely on competitor pricing for your B2B SaaS product!

Discover the 3 consequences…

and 3 effective uses for competitor pricing.👇

Pricing is a crucial aspect of any SaaS business. And while it’s tempting to use your competitors as a guide for what you should charge, this isn’t always the best strategy.

Here are some of the consequences:

1. You ignore your impact on the world

Focusing on competitor prices ignores the value that your product brings to your customers. Your product is unique and offers value in a way that no other product can. When you price it based on what your competitors are charging, you're not accurately communicating the value of your product.

2. You assume competitors are making smart pricing decisions

Your competitors may have different goals than yours, such as market share or growth rate over profitability, so their pricing decisions might not align with what would make sense for YOUR business model and goals.

3. You teach customers to focus on price over value

Don't fall into the trap of competing solely on price—teach customers about all of the value you offer so they can make an informed decision and get the best bang for their buck!

So… What should you use competitor pricing for?

To understand your competitors' business model

Use their prices as an opportunity to gain insights into their business model and understand how they're approaching their pricing strategy.

To identify opportunities

Paying attention to competitors' prices can also help you identify opportunities where you can differentiate yourself and offer something unique that no one else is offering.

To keep up with shifts in the market

Staying up to date on competitors' pricing can help you stay abreast of market shifts and adjust your own pricing strategies accordingly.

Relying on competitor pricing as the main factor in your SaaS pricing strategy can have unexpected consequences. Instead of blindly following competitors, consider using their pricing as a way to understand their business model, identify opportunities to differentiate yourself, and stay up to date on market shifts.

What's your biggest takeaway? and how do you use competitor pricing? Continue the discussion on LinkedIn here!

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