by Alex Moskovski

How much should you charge for your Software-as-a-Service tool? I analyzed prices from 1,530 products to find out.

It takes time to figure out the right pricing for your Software-as-a-Service product. And even a slight mistake can end up costing you a fortune over the long run.

I can’t overestimate the importance of exploring the market around you and understanding the pricing in your niche. The good news is that I’ve already done a lot of this research for you.

This collection of charts — which are based off the current prices of 1,530 SaaS products — will give you a good idea of the distribution of prices in your vertical.

SaaS starter prices distribution by niche

When I try to come up with the right pricing for my SaaS web services, I start by analyzing the minimum prices of my direct and indirect competitors. After collecting the data-points I plot them on a chart and look for spikes there. The spikes mean that there is a distinct price segment here which in turn means the presence of demand.

By the way, the absence of a spike in a place where it ought to be could mean that there is an opportunity to enter the niche.

Here is what my team has collected by visiting every single SaaS in the respective categories of software catalogs.

First, a few words on how these data were collected.

We had lists of SaaS web services from several software catalogs. By going through every item on those lists, we found the minimum price for each SaaS. Then I filtered out free services and the services that costs more than $500, and put the data on the charts.

178 data points, $30 average minimum price.

120 data points, $73 average minimum price.

94 data points, $75 average minimum price.

148 data points, $49 average minimum price.

97 data points, $62 average minimum price.

80 data points, $53 average minimum price.

107 data points, $36 average minimum price.

113 data points, $52 average minimum price.

54 data points, $58 average minimum price.

138 data points, $31 average minimum price.

90 data points, $104 average minimum price.

67 data points, $61 average minimum price.

45 data points, $101 average minimum price.

55 data points, $130 average minimum price.

36 data points, $93 average minimum price.

41 data points, $33 average minimum price.

13 data points, $19 average minimum price.

54 data points, $47 average minimum price.

The right price analysis of your niche is the first step in pricing your software. While these charts are not a panacea, they can give you an idea of the general level of prices out there, and help you figure out how to price your own products to your customers.

Thanks for reading! I will try and update this article as we gradually collect more data.