What Goes Into a SaaS Quote?

What is a SaaS quote?

A SaaS quote is a document or web page that relays your pricing to prospects. It displays personalized information about products, add-ons, quantities, and - of course - pricing. Modern SaaS quotes are interactive. Customers can choose different tiers, features, quantities, and more to create a package that makes sense for them. 

A SaaS quote is not a pitch, presentation, or slide deck. It’s the last piece of collateral prospects see before signing a contract making a purchase. Its goal is to help prospects configure their purchase.

Competitive pricing strategies can come in many forms, a business can choose to always be the cheapest of their competitors or always offer the average price of the highest and lowest priced competitors

A competitive pricing strategy is a price-setting that is based on your competitors’ prices. This pricing method focuses solely on the prices of your competitors that are public, but it does not take into account how much customers value the product or production costs.

A strong competitive pricing model is based on thorough market research. When you know how the prices of your top competitors in your market and how those prices might meet customer expectations, you have a basis for determining the rates of the prices of your own products or services. Competitive pricing strategies can come in many forms, a business can choose to always be the cheapest of their competitors or always offer the average price of the highest and lowest priced competitors - they all count as competitive pricing strategies.

What goes into a SaaS quote?

Here are the elements you’ll typically see on a SaaS quote web page or document.

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  • Product variations - SaaS products usually have multiple variations. These may come in the form of feature sets, usage packages, or plans. It’s important customers are able to choose the exact package that works for them on the quote page. In Salesbricks, product variations are known as plans.
  • Add-ons - Additional features and services are often available with a software purchase. These may include extra usage, features, user licenses, and more. These should be clearly indicated and priced so the prospect can opt into them easily.
  • Billing cycle - Vendors that offer multiple billing cycles should make these clear on the quote page. Customers should be able to see, and choose between these easily. 
  • Terms - Payment terms and contract duration should be summarized on-page. In unlocked quotes that are interactive, terms need to be updated dynamically based on customer preferences.
  • Real-time calculator - This allows prospects to see how their choices are affecting the final price of their product in real-time. Sort of like traditional e-commerce checkout.

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Gain Marketshare and increase revenue
Position your products compared to competitors
Analyse the pricing of competitors and learn

Why is a SaaS quote important?

A SaaS quote is important for a number of reasons. 

Budgeting. Quotes let potential customers know how much your product costs, so they can plan their budget accordingly. When pricing is clear, it leads to more qualified leads. Interactive quotes, also known as "unlocked quotes," allow prospects to adjust pricing to fit their budget.

Configuration. A SaaS quote allows potential customers to customize their purchase according to their needs. They can choose the number of users, usage credits, and other features that fit their requirements and budget.

Frictionless Sales. A high-quality, interactive quote makes it easy for potential customers to configure and purchase products. They don't need to engage in any back-and-forth with the sales team to create a package that works. Instead, they can adjust the quote, sign the contract, and pay. This makes the buying process feel effortless and puts potential customers in control.

Transparency. Quotes help customers make informed decisions about their purchases by providing them with all applicable fees, billing cycles, and potential additional or future costs. This reduces the risk of unexpected costs, hidden fees, and surprises, giving customers a clear understanding of what they are buying.

Engagement. Detailed quotes that show potential options keep prospects engaged with your product and more likely to make a purchase. This is because every interaction with you or your product increases the likelihood of making a sale.

What is SaaS quote management?

SaaS quote management is the process of guiding quotes from creation to order completion and sometimes even after that. It includes creating quotes, sending them, following up on them, and helping clients use them.

Quote management is important for two reasons. 

Internally, quote management helps sales teams create attractive quotes that convert consistently. It also keeps quotes organized, accurate, standardized across the organization. 

Externally, quote management helps close more sales. It guides prospects towards the sale with reminders, information, and personal attention. It also helps sales reps stay on top of the quote-to-sale process by keeping client-facing operations organized. 

As an added bonus, quote management provides valuable data. For instance, if your data shows that clients typically need two reminders to complete their quote, you can create reminders during the sales cycle that help close the deal.

5 things to look for in a SaaS quoting solution

  • Low-touch features: You should be able to send out quotes without a significant amount of effort. Low-touch systems let you do just that. For example, Salesbricks makes it simple for you to design and deploy quotes in minutes, using just your browser. 
  • Rich, simple quote design: The quote is going to be the last thing that prospects look at before they decide whether to choose your solution. You want to be able to create quotes that look great and optimized to convert. You should be able to edit pricing and packaging, rate cards, trial offers, and more with ease.
  • Guardrails. Your sales team should have measures in place that help them win. Your quoting tool should come with rules that suggest appropriate (or inappropriate) discounts, packages, upsells, and offers. This ensures that your sales team is guided towards winning sales.
  • Easy-sign and built-in checkout: Make it easy for your potential customers to sign and checkout after accepting your quote. This reduces friction and makes purchasing from you easy. With an all-in-one solution that includes easy-sign and checkout features, you can make purchases frictionless and delight your buyer.
  • Easy subscription and billing management: From creating spot-on invoices to giving customers the entitlements they need, everything should be a few easy clicks away. If you need to modify a subscription or payment, it should be easy to do. The fewer clicks and steps, the better. 

Choosing the right pricing model for your SAAS business

Aside from the pricing model type, you must consider many other factors. Ask yourself the following questions when deciding what model works best for your business:

  • Customer base and target market:
    What are they looking for?
  • Competition: What are the other
    companies in your market doing?
  • Value proposition: How much value
    can you offer for each pricing option?
  • Product and pricing strategy: Which pricing model aligns with your business goals?
  • Van Westendorp model: Do you know your customer's willingness to pay for your product?

Don’t worry about choosing the wrong pricing model. The idea isn’t to do a perfect job; it’s to do the best job possible.

Once you have launched your product and corresponding pricing model, never stop testing, gathering feedback, and analyzing data. This way, you’ll always be in a good position to switch to a better pricing model.

2 SaaS quote types (with examples)

The images below both show what a good SaaS quote looks like. The first is for a locked quote, while the second one is unlocked.

Locked quote

This is a locked quote, meaning the prospect cannot edit it on their end. Notice that prices, quantities, and the total price are clearly displayed in multiple places. That price is locked into place by the salesperson. The details of the order are clear, including add-ons. 

A progress bar tells prospects exactly what step they are on in the purchase process. There is no doubt in the customer's mind regarding what they are getting and what they are paying. And if they do need to get a second opinion, they can share the quote with teammates with the click of a button. 

Unlocked quote

The second page shows a quote that’s “unlocked”. It can be configured by the prospect using toggles and entry forms. The base product and price are clear, and it's easy for prospects to add or subtract features that they want. 

Prospects can also select the duration of their contract, as well as when it starts. The total price is clearly displayed in multiple places, ensuring that customers know exactly what they're getting. 

The total price is updated in real-time, as they add or remove features. A progress bar is also provided, making it clear where customers are in the purchase process. 

Let’s wrap up…

  • There are 9 main pricing models to choose from in SaaS. User-based, custom, hybrid, feature-based, freemium, tiered, flat rate, usage-based, and inverse pricing.
  • Pricing models need to make you money, keep clients happy, and increase your appeal in the marketplace
  • The pricing model you use can (and likely will) change over time. Make a choice now, but be prepared to change your mind later
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What if you never had to wonder what goes into a SaaS quote? What if a piece of software asked you a few questions, then generated the perfect quote for you - each time?

Better yet… What if the whole process only took a few minutes?

No need to wonder. Thats what
we do here at Salesbricks.

Our business was founded by Jon Festejo and JL Swaine: two salespeople managing $2 billion in sales contracts. They found that SaaS quotes took ages to make and were often bug-ridden, inaccurate, or poorly designed.

That’s why they made Salesbricks. Legacy quote software, like CPQ, takes 90 minutes to make a quote. Salesbricks gets the job done in a few minutes, giving you beautiful, interactive quotes that convert.

Why not book a quick demo and see what we can do for you? 

The salesbricks solution

Choosing a pricing model is hard in and of itself

Actually applying your pricing model is even more difficult. You have to show prospects quotes, collect payments, manage subscriptions and access… It’s a lot of work

That’s why we created Salesbricks to make your life easier

Our software helps you create offers and quotes, manage subscriptions, and automate payment processes - renewals, cancellations, etc.

With Salesbricks, you can apply any kind of pricing model in minutes

You can also do complex things instantly - for example, test different pricing models against each other or adjust your pricing model on the fly