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Pricing of a B2B SAAS product.

We are launching a new B2B SAAS product. We could either ask the customer to sign the contract or get the payment via credit card. Our thinking is if he did the payment by credit card, the sales cycle will be much shorter. What is the optimal price point so that customers don’t have to go to their VP’s/Finance for for approval. We would like to maximize the revenue, but also shorten the sales cycle.

I realize that larger companies may still have to go to legal department to ensure governance.

Given the nature of the product, it won’t be based on users. It will be an enterprise wide license.

 

  • I would suggest you tier it specifically so you can have a limited version that allows them to go under the limit required for approval – usually around $500/mo.

    Then when they’re on board and ready to roll out the the wider enterprise, you can bill them at 100K/year through their formal purchasing channel.

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  • The budget threshhold varies from company to company. Most likely you payment options are not going to shorten your sales cycles, especially in the enterprise space. When you sell into the enterprise, there is a buyer who has to stake their internal political capital on why they chose you over the market leader. “Because they take credit cards” is rarely good enough to make that justification.

    Basically the customer is going to tell you how they can buy, and you need to be ready for that, “we only work on PO”, “everything has to be approved by legal”, “we can only buy off the GSA”, etc.

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