SaaS Pricing: From $30/Month to $75K Enterprise Deals
Show notes
Patrick McKenzie built Bingo Card Creator into a $300K business, then spent four years stuck on the long slow SaaS ramp of death. His SaaS pricing started at $30/month for hair salons that barely cared about no-shows. The real customers were trades businesses losing $500-$3,000 per missed appointment. Patrick reveals how he validated demand by walking into 15 Chicago businesses with an iPad prototype for under $400, why his initial SaaS pricing targeted the wrong customer segment, and how he landed a $75K enterprise contract while running Appointment Reminder solo from Tokyo. His SaaS pricing strategy evolved from a single $30/month plan to tiered pricing tiers that served both individual professionals and five-figure enterprise accounts. After four years at $7K MRR, Patrick hired a commission-based sales rep and built the systems needed to scale. He also shares the worst outage in his career - when every customer received 96 automated calls at once - and why personally calling 60 affected customers turned a disaster into a trust-building moment. Patrick's SaaS pricing lessons prove that matching price to customer pain level matters more than any feature set. 🔑 Key Lessons 💰 SaaS pricing must match the customer's pain level: Patrick's $30/month plans attracted hair salons with no real pain, while trades businesses losing $500-$3,000 per missed appointment became the core revenue drivers. 🎯 Validate SaaS pricing assumptions with shoe-leather research: Patrick validated Appointment Reminder by walking into 15 businesses with an iPad prototype for under $400, learning more in one day than months of online research. 📉 The long slow SaaS ramp of death punishes lack of passion: Patrick spent four years stuck at $7K MRR because he chose a profitable market over a problem he cared about. 🤝 Hire a sales rep before you think you can afford one: Patrick's commission-based sales hire broke the pattern of growth happening only when he personally responded to inbound emails. 🛠️ SaaS pricing tiers unlock enterprise revenue from the same product: Appointment Reminder served $30/month solo professionals and $75K enterprise contracts simultaneously, expanding addressable market without rebuilding the product. 🧠 Listen when smart founders warn you about passion: Peldi from Balsamiq told Patrick not to build Appointment Reminder because he was not excited about it. Patrick ignored the advice and spent four years proving Peldi right. 🚀 Personal crisis response builds SaaS customer loyalty: When 96 automated calls hit every customer at once, Patrick's decision to personally phone 60 people turned a catastrophic failure into a trust-building moment. Chapters Introduction and Patrick McKenzie's background Bingo Card Creator: $300K revenue and end of life What Appointment Reminder does and who it serves Finding the real customer: trades vs hair salons Walking into 15 businesses in Chicago with an iPad Four years of distraction and the passion problem The worst day: 96 phone calls per customer How his daughter changed his approach Current revenue: $7K MRR plus enterprise contracts Lightning round Resources Full show notes: https://saasclub.io/44 Join 5,000+ SaaS founders: https://saasclub.io/email
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