In this world and age, in every aspect of a business, a code or an AI system is used, be it to update the inventory, ease the SCM process, or to even facilitate a merger. Only a few would’ve guessed that they need a software to even decide . the price on which they want to sell their products or services. For this to become a possibility, among the B2B industry, the companies started developing B2B SaaS pricing strategy software. SaaS is a software licensing and cloud computing method of delivering software . That is issued to businesses as a service on a subscription basis. SaaS software acts as a platform to compute and data in an already structured machine language interface.
The Need of Strategy: Drive Better Results
In today’s business environment, you can’t leave such an integral part of a daily functioning business, like Pricing, to chance. A good price structure management can be achieved with and without the SaaS software . but it is evident that AI and machine languages take a load off the manpower and publish excellent results. SaaS software is relatively easy to use because of the development by back-end workers. Their clients, or the end-user, just have to put in the data . they have acquired to make decisions directly affecting the business. Pricing is a very strong contender to have by your side.
2 Ps of Marketing Achieved
The pricing software(s) enabled by AI allows companies to not only decide the pricing structure of their goods . But also to target down an optimal promotion strategy to ease the before and after-sales services. So out of the 4 Ps of Marketing, that is, Product, Place, Pricing, and Promotion . this nifty SaaS-based software delivers on the latter Ps. The calculation is done using the predictive models that in turn leverage machine language, AI, and price science to drive better results.
Evolving SaaS Pricing Methods
Pricing strategies using SaaS has been evolved using three pricing models, these are-
Cost-Based Pricing
It is the easiest method to start with to receive adequate results to drive business models. This model works on the information of how much a good costs at the development stage. For example, if your goods cost 10$ to make, you add a 30% profit margin and sell it for 13$ earning the 3$ as your profit.
In the long run, this model is not advisable because you’re leaving more money than you’re earning.
Market-Based Pricing
It’s as simple as its name, to price a product or a service, study the market and the competitors. It’s easier for the end-users as the SaaS software enables them to see the trends in the market . and make a calculated decision.
Value-Based Pricing
Value-Based here means pricing your product or service based on the value perceived by the customer. It is a very customer-friendly process enabling the companies to get in touch with the end-users.
As it doesn’t cater to the standards set by the competitors or the market . The provider has the leeway to target the customers who want their products.
Conclusion
In the end, pricing shouldn’t be a negative process alienating the customers . It should enable them to feel like they have a choice. Traditional pricing methods sometimes tend to do the opposite and that can result in the failure of a business. Machine learning and AI are holding our hands taking us into the future in our daily lives . So why not inculcate that in our professional life too?