Pricing Transparency Can Make Or Break Startups In The Tech Space

One of the most important factors to the success of a startup is the pricing of its products and services. However, many startups in the SaaS space (as well as other newer technology services) obscure or completely withhold their pricing information from public access. The intent, it seems, is to conceal pricing from the competition — but it often comes at the expense of attracting new customers. While a product or service is judged by its features and capabilities, new buyers are also keeping their budget front of mind. In other words, the lack of pricing transparency is costing these companies money.

Become a Subscriber

Please purchase a subscription to continue reading this article.

Subscribe Now

When launching a product or service, some new companies skip the pricing strategy step of development. In fact, McKinsey Company estimates that fewer than 15% of companies do systematic pricing research. It stands to reason that if your main selling point is a low price compared to competitors, keeping that information from potential customers negates the advantage. Companies like Salesforce have built large revenues by attracting customers with price value for their services before allowing them to compare and contrast with the competition.