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"We charge $99/month because we're afraid to charge more" — Nguyen Van An hears this from dozens of Vietnamese founders. And this is a big problem. Underpricing doesn't just hurt revenue — it signals that your product isn't good enough.
In B2B SaaS, price often inversely correlates with conversion friction: cheaper products are often harder to sell because buyers don't trust the ROI.
Value-Based Pricing: Start from ROI
Instead of pricing from cost + margin, start with: how much money does your product save or generate for customers? Rule of thumb in enterprise SaaS: charge 10-20% of the annual value you create. If you save a customer $500,000/year, charging $50,000/year is very reasonable — and easy to justify with procurement.
“The first time I doubled our price, I nervously waited for customers to leave. The result: churn decreased and deal size increased. Low prices attract your worst customers.”