Summary
The flexibility that software-as-a-service (SaaS) offerings provides to customers must be reflected in its pricing. Do the proper homework before setting pricing; pinpoint the offering’s costs, key market segments and competition. Software-as-a-service (SaaS) providers must price their offerings based on the complete value they deliver, even if that value is hidden in the customer’s value chain. In this report, we offer principles and best practices for understanding the value of a SaaS offering and creating a pricing structure.
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