The perception about an SaaS product's price might depend on how customers value them.
I want to mention SiftScience as the example. Note that it's a B2B SaaS product. The company I am working for is running an eCommerce business. They utilize SiftScience to fight credit card frauds. They paid them around $50K/mo for detecting frauds out of 1 million transactions/mo. At the first time, I think it's expensive enough, because credit card fraud is one of hundreds problem in the company and it is not the only payment options for buying the products. The company can just hire skilled programmers to build only fraud detection for less than $50K/mo salary.
Not until I know their future plan that they are going to jump into financial industry. The money will move very fast. Credit cards will dominate the payments and the chance is there will be more credit card frauds too. The company wants to build the customers' trust before the product starts to launch in order to attract many users. So, we need to reduce fraud cases as much as we can. Using SiftScience sounds like outsourcing the fraud detection works to other. With it, we can increase how many transactions will be monitored instantly. Hiring high skilled programmers might be a late choice here, but we can do it in the future if the product is successful. With that case, I can say that SiftScience fraud detection product's price is worth it.
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[ 2.8 ms ] story [ 17.0 ms ] threadI want to mention SiftScience as the example. Note that it's a B2B SaaS product. The company I am working for is running an eCommerce business. They utilize SiftScience to fight credit card frauds. They paid them around $50K/mo for detecting frauds out of 1 million transactions/mo. At the first time, I think it's expensive enough, because credit card fraud is one of hundreds problem in the company and it is not the only payment options for buying the products. The company can just hire skilled programmers to build only fraud detection for less than $50K/mo salary.
Not until I know their future plan that they are going to jump into financial industry. The money will move very fast. Credit cards will dominate the payments and the chance is there will be more credit card frauds too. The company wants to build the customers' trust before the product starts to launch in order to attract many users. So, we need to reduce fraud cases as much as we can. Using SiftScience sounds like outsourcing the fraud detection works to other. With it, we can increase how many transactions will be monitored instantly. Hiring high skilled programmers might be a late choice here, but we can do it in the future if the product is successful. With that case, I can say that SiftScience fraud detection product's price is worth it.