Selecting the right price for a SaaS product is a challenging task. The price of a product has an out-sized impact on customer conversion, brand perception, competitiveness and gross margin. Getting the price right or wrong can have a material impact on revenue, company valuation and growth prospects.
Now consider the challenge of selecting the right price for SaaS products across multiple international markets. Beyond navigating local currency support and preferred payment methods, the *right* local price can remain elusive.
It’s common to see product-led companies simply replicate their US-based pricing (and US dollar currency) across international markets, rather than handle the complexity involved in price localization. The problem with this simplistic approach is that it leaves money on the table in almost every market. Low paid conversion and retention rates means that Marketing must spend more and work harder to grow international revenue.
Global Pricing Review
I’ve conducted a deep dive into the international pricing strategies of 10 leading product-led growth SaaS companies across 4 key global markets (UK, Eurozone, Japan, Brazil):
Asana
Canva
Dropbox
Figma
HubSpot
Monday.com
Notion
Slack
SurveyMonkey
Zoom
For these successful companies, it’s clear there is no universal approach to SaaS pricing. They demonstrate that growing revenue and market share internationally requires a strategic approach to product pricing.
GBP/EUR/JPY/BRL: Indicates support for local currency (British Pounds, Euro, Japanese Yen, Brazilian Real)
VAT Incl: Prices in UK/Eurozone typically include VAT (consumption tax)
Competitive: Pre-tax base price is competitive, often slightly lower than US benchmark
Parity: Pre-tax base price closely aligns with US benchmarkAcross the 10 companies, the extent of price localization varies greatly and multiple themes emerged:
