Understanding Value Pricing and Its Significance in Value SaaS Businesses
Value pricing, as defined by Rajan, is the concept of determining a product’s worth based on the value it offers to customers rather than its features. He emphasizes the importance of prioritizing value before growth hypothesis, which serves as the guiding principle for value SaaS companies.
Thiyagarajan Maruthavanan, a partner at Upekka, a value SaaS company, and co-founder of Start-up Bridge India, discusses the relevance of value pricing in situations where capital is limited. He addresses why Indian startups require ten times more effort than those in the Silicon Valley, the right time for founders to sell, and how to choose between investing and bootstrapping.
Maruthavanan, an expert in product management and an innovation leader, shares insights into the intricacies of value pricing. The Value SaaS Series highlights businesses that are striving to reach their first million in revenue. These companies either bootstrap or secure minimal external funding, allowing them to iterate rapidly and establish a growth engine that scales to $10 million and beyond. By leveraging founder-friendly capital, they experience rapid growth and success.