Towards a practical approach to value-based pricing: Development and evaluation of the "ROI calculator tool for SaaS Startups" to improve value quantification & value communication
The software-as-a-service (SaaS) market has experienced significant growth in recent years, with business-to-business (B2B) SaaS companies being particularly attractive to venture capitalists. Profit expectations for startups are high, so optimizing pricing based on customer value is crucial. Many startups may encounter challenges in "wanting" to implement value-based pricing-i.e., they face barriers in the decision-making process such as lacking awareness, understanding, or openness to consider value-based pricing-or in "knowing" how to implement it-i.e., they would like to implement value-based pricing but face barriers related to required capabilities to execute it. This study addresses the second hurdle by developing and evaluating a practice tool to improve value quantification and value communication for B2B SaaS startups.