SaaS pricing: is it ok to be the cheapest?
Tim acknowledges that being the cheapest isn't always the best strategy for SaaS pricing but highlights affordability as a way to stand out, especially for solo individuals or small companies needing branded links. Justin supports the idea of being more affordable, especially for indie products, as it helps them stand out when people are actively searching for a solution. He emphasizes the importance of volume and manageable customer service in making this pricing strategy successful. Justin points out that being the more affordable option can be advantageous, especially when there are comparable products. He suggests that, along with affordability, offering excellent customer service can further differentiate a product and attract more users. Justin discusses the nuance of pricing strategy, mentioning that charging less is not inherently bad and can be advantageous depending on factors like product demand and user volume. The conversation refers to the example of geo coded and their pricing strategy relative to Google Maps API, emphasizing the benefit of positioning oneself as more affordable, especially when the competition becomes expensive.