Earlier this week I was asked about my thoughts on publishing product prices and general price transparency. Whenever I visit a website, especially for a Software-as-a-Service (SaaS) product, one of the first things I do is go to the pricing page and try and understand how the company positions themselves in the market. Overall, I’m a big fan of price transparency on a SaaS site for a number of reasons:
- Provides potential customers more information in an effort to empower them as much as possible
- Creates an anchor for sales people to work with, and is especially great when combined with a no/limited discount policy
- Makes it clear how customers are segmented by way of product functionality
- Sets expectations around freemium products, if applicable (e.g. if the product is free, then the provider makes money off the users)
- Allows for custom pricing options so as to capture more value and provide a different level of service to high-end customers
Personally, I’m a practical personal that wants to empower buyers, and I think price transparency is a critical component of that.
What else? What are some other thoughts on price transparency?