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Pricing Strategy redesign for ERP provider expanding in ME

The Context

A fast-growing SaaS company sought to revamp its pricing model—including core product and add-on offerings—for a key Middle Eastern market. The client needed a strategic approach that factored in competitive dynamics, customer segments, and market-specific sensitivities.

About the Client

A Software-as-a-Service (SaaS) company that provides Enterprise Resource Planning (ERP) software for pharmacies, with presence in Middle East.

Our Approach

Conducted Customer Interviews to Gauge Willingness-to-Pay​

  • Engaged directly with customers to understand their price sensitivity and value perception across different product offerings.
  • Leveraged the Van Westendorp Price Sensitivity Methodology to identify optimal price ranges and thresholds acceptable to the target market.

Analysed Competitor Pricing Structures​

  • Mapped and segmented key competitors based on their pricing strategies, feature packaging, and value communication.
  • Designed a pricing structure that strategically positioned the client’s offerings as more compelling and value-driven relative to the competition.

Developed Market-Aligned Pricing Models for the specific Middle East Market

  • Assessed market conditions and customer expectations specific to the region to localise the pricing strategy.
  • Proposed the optimal pricing model for different add-ons—including subscription-based, commission-based, cost-plus-margin, and perceived value approaches—to maximize flexibility and product-market fit.

The Impact

  • Achieved a 20% increase in Annual Recurring Revenue (ARR) by implementing a market-aligned pricing model tailored to product value and customer segments.
  • Improved pricing clarity and flexibility led to higher conversion rates for premium add-ons and reduced churn among existing customers.

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