Designing a Price-Sensitive SaaS Product Produces $2 Million Annual Revenue on a $70,000 Investment
Revenue growth for the company’s flagship subscription product turned stagnant with new customers simply replacing departures. The purchase price combined with the customer’s installation and maintenance expenses made the offering cost-prohibitive for less-affluent prospects.
Recognized the opportunity to leverage the firm’s technology to offer a scalable SaaS (ASP) product to larger customers and a lower-priced version to clients with smaller budgets. Proposed the concept to upper management and upon receiving approval conducted a proof-of-concept engagement using existing internal resources. With the application’s performance verified, promptly built the required operational infrastructure.
With the ability to reach a wider client base, the platform produced annual revenues exceeding $2 million on an initial capital expenditure of $70,000 and yearly maintenance of $25,000.