To a major automotive corporation like General Motors $10K is less than a rounding error.
To a bake shop, $10K might be all of their expenses in total for an entire quarter.
The point is that cost is relative and that absolute numbers aren’t super helpful without more context.
This matters when you’re trying to measure the ROI or return on investment for your SaaS product. A better understanding of this concept will help you:
- Provide your customers with a strong return
- Ensure you are capturing adequate value for the business
- Enable you to price competitively in your market
So what should you charge for access to your SaaS product?
Well that all depends. How much is your product saving your customer?