The rise of Software as a Services (SaaS) has completely changed how businesses use software.
That’s why when we’re trying to get our heads around SaaS, it’s useful to know how much is SaaS per month.
Obviously, there’s no simple answer here. The price of SaaS depends on several factors, including the type of product, what the market wants, and what the users need.
For instance, a mass-market SaaS solution aimed at individuals might use a freemium model or usage-based tiered pricing.
Meanwhile, a niche solution for large enterprises might involve individual contract negotiations and a higher price point, reflecting its specialised value and associated costs.
So, let’s take a closer look at the cost of SaaS and the strategies here.
Importance of Understanding SaaS Monthly Costs
SaaS monthly costs can make a big impact on a company’s budget and overall financial health.
This is especially important for any kind of business dealing with competitive markets and changing customer demands, where every cost can have a direct impact on profits.
If you know how much these monthly prices are, you can predict what you’ll be spending, make sure you’re using your resources in the best way, and avoid any unexpected expenses.
As Saltan and Smolander point out in their study, getting SaaS pricing right means making decisions together across different parts of the business, like R&D, marketing, and customer acquisition.
If you break down your SaaS monthly price, you can work out whether you’re getting value for money in line with your business goals.
Meanwhile, for comparison on the SaaS subscription, you can check “SaaS vs Subscription Comparison: Pros, Cons, and When to Choose Each.”
Factors Influencing SaaS Monthly Costs
The average cost of SaaS solutions changes all the time, depending on lots of different things.
This is because businesses have different needs and the way prices are set is always changing in the SaaS industry.
Let’s look at four main things which have a big impact on SaaS pricing decisions.
Types of Customers and Market Segments Targeted
This factor recognises there are different customer groups with different needs, budgets, and willingness to pay for SaaS solutions.
For example, a mass-market SaaS product aimed at individuals might choose lower price points and a freemium model.
Meanwhile, a niche solution aimed at large enterprises can charge more because it’s more specialised and often requires complex implementation and support.
For more info on the basics of SaaS subscriptions, you can read “What are SaaS Subscription Pricing Models? A Beginner’s Guide.”
Delivered Value and Willingness to Pay (WTP)
This shows how important it is to make sure the price of the SaaS solution matches what the customer thinks it’s worth.
The Saltan study shows there’s a link between how much people are willing to pay and how much they think the solution is worth, particularly for solutions that address critical problems and deliver tangible business results.
Saltan and Smolander also show how traditional per-user pricing models don’t always show the value delivered accurately.
They suggest using usage-based metrics to make sure customers pay for what they get.
Complexity of SaaS Purchase and Usage
This aspect shows us the operational factors that affect pricing.
SaaS solutions that need a lot of human input when it comes to purchase, customisation and maintenance will usually have higher costs, which you’ll see reflected in their pricing.
For instance, high-rise SaaS solutions aimed at large companies often require lots of contract talks, bespoke implementation services and ongoing support, which adds to the monthly costs.
Level of Nicheness of the SaaS solution
This factor looks at how market dynamics affect every business strategy when SaaS paid monthly.
Solutions tailored to specific industries or customer groups with unique needs often have a premium price tag because there’s less competition and the value they offer is specialised.
On the other hand, mass-market solutions aimed at a wider audience may face more competition and need to adopt more competitive pricing strategies.
Saltan and Smolander also look at how these factors affect pricing by looking at the pricing practices of 220 SaaS providers.
The Saltan study shows that 54% of the companies surveyed use tiered pricing, which allows providers to cater to different customer groups with different needs and budgets.
The researchers also found that 91% of SaaS companies include the value of their solutions on their pricing pages, showing how important value-based pricing is in the SaaS industry.
What’s more, the analysis of the value metrics used by these companies showed that most of them use metrics based on users and functions.
This suggests that there’s a strong link between pricing and the core features and functionalities offered by the SaaS solution. Now, let’s see how much is SaaS per month in a few different niches.
But, for further insight into the challenges of SaaS subscription, please refer to “Tackling Common Challenges in B2B SaaS Subscription Management.”
Average Monthly Costs for Common SaaS Categories
Customer Relationship Management (CRM) Software
CRM tools like Salesforce and HubSpot are usually priced based on how many users you have or how much you use them.
These days, CRM platforms have pricing tiers ranging from $17 to $300 per user, per month, depending on what’s included and the level of support.
This pricing model is really popular because it’s easy to predict, which is great for businesses that need scalable solutions as they grow.
You may find it helpful to take a look at “SaaS Subscription Management System: What Needs to Consider & How?“
Project Management Tools
Project management tools like Asana or Trello often use a similar tiered model, with entry-level plans starting at around $10 per user, per month, going up to more than $30 per user for enterprise-level packages.
However, a lot of SaaS providers offer free trials, which is pretty standard for project management tools.
This gives businesses a chance to try out the software before they decide to pay for a plan.
Accounting and Finance Software
Accounting tools like Xero and QuickBooks are priced based on what they can do, with a typical monthly cost starting around $13.
Top-tier packages with advanced financial reporting, payroll management, or tax features can cost over $60 a month.
The pricing is often a mix of feature-based and value-based approaches, so clients pay more for features that directly enhance their financial processes.
Marketing Automation Platforms
The price of marketing automation platforms like Mailchimp and HubSpot can vary a lot depending on things like the automation capabilities, audience size, and CRM integration.
You can get started with a basic package for just $25 a month, but if you want all the bells and whistles, you’ll be looking at hundreds of dollars a month.
Communication and Collaboration Tools
Communication tools, including Slack and Microsoft Teams, are often priced on a per-user basis with monthly fees ranging from $5 to $15.
The thing to remember is the per-user pricing model is still the most common for collaboration tools. It’s simple and transparent, which makes it easy for businesses to budget based on team size.
The particulars of the agreement about the Software as a Service (SaaS) can be found in “Your SaaS Subscription Agreement Explained: Key Terms & Best Practices.”
How Octobits Can Help You Get the Best SaaS Pricing
Octobits is a SaaS management platform designed to make software ecosystems work better for businesses.
Octobits is all about making life easier for IT managers and MSPs by giving them the tools to manage their software environments more effectively.
So, how Octobits do it? The Octobits dashboard lets you manage services, billing, and reporting in one place, giving you a clear view of your IT services.
So, Octobits is a one-stop shop for software management. It helps businesses cut costs, boost efficiency, and improve security, which are all key to getting the best price from your SaaS investments.
With features like centralised billing, easy integration with major IT systems, and comprehensive reporting, Octobits is a must-have if you really want to cut IT costs while keeping your software solutions up to scratch.
But don’t leave it too long. This is your chance to make your IT workflows easier with a free, all-in-one dashboard.
Yes, you can get Octobits for free until December 2024. So, don’t miss out!
In Closing
There are a few things to think about when it comes to SaaS price. Things like pricing strategies, how many users you need, and which features you need.
It’s important to think about all of this carefully to ensure that you’re getting the right deal.
At the end of the day, the key to getting the most out of SaaS is finding the right balance between cost and value.
That’s where Octobits can help. We will find and evaluate for you how much is SaaS per month, based on your needs and goals.
