--- title: SaaS Fundamentals 02 - Modeling your SaaS business with Products and Prices slug: saas-fundamentals-02-modeling-your-saas-business-with-products-and-prices published_at: 2022-08-31 19:26:26 +0000 updated_at: 2023-01-30 22:52:05 +0000 summary: description: In this episode, you’ll learn how to model your business with Products and Prices to get the most out of your Stripe integration. ### Presenter CJ Avilla - Developer Advocate at Stripe - https://twitter.com/cjav_dev ### Table of contents 00:00 Introduction 00:30 Products and prices overview 02:57 Set up Stripe Tax 03:30 Adding a product in the dashboard 04:30 Adding multiple prices to a single product 05:05 Upsells 06:15 Offering good-better-best subscription levels 07:15 Currency pricing 08:30 Conclusion 08:51 Stripe CLI fixtures command ### Resources Written version of this content: https://dev.to/stripe/modeling-your-saas-business-with-products-and-prices-59e0 Business modeling documentation: https://stripe.com/docs/products-prices/pricing-models Stripe CLI fixtures code: https://gist.github.com/cjavilla-stripe/fdafc2666e634742b4fec2db03b34e72 ### Support If you have a question, please feel free to reach out to our support team on Discord at https://stripe.com/go/developer-chat ### Updates Sign up to stay updated with developer news: https://go.stripe.global/dev-digest ### Feedback If you have any feedback about this or other episodes, let us know: https://forms.gle/VjNqzRhotM2snYo88 tags: [stripe, payments, ecommerce, stripedev, subscriptions, SaaS, Software-as-a-service, Modeling your SaaS business with Products and Prices, Products and Prices, Stripe Products, Stripe Prices, Stripe product modeling, Business modeling, SaaS business model, @cjav_dev] views: 1472 author: CJ Avilla url: https://www.cjav.dev/videos/saas-fundamentals-02-modeling-your-saas-business-with-products-and-prices youtube_url: https://www.youtube.com/watch?v=1RwPB3sqzKc youtube_id: 1RwPB3sqzKc embed_url: https://www.youtube.com/embed/1RwPB3sqzKc thumbnail_url: https://i.ytimg.com/vi/1RwPB3sqzKc/hqdefault.jpg type: video --- # SaaS Fundamentals 02 - Modeling your SaaS business with Products and Prices *Published: August 31, 2022* *Views: 1472* ## Watch [Watch on YouTube](https://www.youtube.com/watch?v=1RwPB3sqzKc) [![SaaS Fundamentals 02 - Modeling your SaaS business with Products and Prices](https://i.ytimg.com/vi/1RwPB3sqzKc/hqdefault.jpg)](https://www.youtube.com/watch?v=1RwPB3sqzKc) ## Description In this episode, you’ll learn how to model your business with Products and Prices to get the most out of your Stripe integration. ### Presenter CJ Avilla - Developer Advocate at Stripe - https://twitter.com/cjav_dev ### Table of contents 00:00 Introduction 00:30 Products and prices overview 02:57 Set up Stripe Tax 03:30 Adding a product in the dashboard 04:30 Adding multiple prices to a single product 05:05 Upsells 06:15 Offering good-better-best subscription levels 07:15 Currency pricing 08:30 Conclusion 08:51 Stripe CLI fixtures command ### Resources Written version of this content: https://dev.to/stripe/modeling-your-saas-business-with-products-and-prices-59e0 Business modeling documentation: https://stripe.com/docs/products-prices/pricing-models Stripe CLI fixtures code: https://gist.github.com/cjavilla-stripe/fdafc2666e634742b4fec2db03b34e72 ### Support If you have a question, please feel free to reach out to our support team on Discord at https://stripe.com/go/developer-chat ### Updates Sign up to stay updated with developer news: https://go.stripe.global/dev-digest ### Feedback If you have any feedback about this or other episodes, let us know: https://forms.gle/VjNqzRhotM2snYo88 ## Transcript products and prices are core resources for many stripe integrations they're closely related to checkout sessions customer portal invoices payment links subscriptions and even the new orders api in this episode you'll learn how to create products and prices you'll eventually want to take advantage of that customer portal in the pricing table in upsells and more compatibility across stripe is really why it's important to model your product catalog right the first time at a high level products are what your business offers whether that's a good or a service prices are how much and how often to charge for products including how much the product costs what currency to use and the interval if the price is for subscriptions you can create and update products and prices in the dashboard or through the api you really only need to create products and prices when you're first setting up an integration or if you're launching a new product offering you may also offer a setup fee or a one-time training service that would also be configured as a product a product requires a name it can optionally have several other attributes like description images and more so most sas pricing tables are going to have this list of features that are included for a given subscription level and you can specify those features on the product products can also have an associated tax code there's several tax codes related to sas and they're used with stripe tax to determine the right taxes to apply when charging the customer now each product must have one or more related prices prices can have a fixed unit amount or it can have tiers tiers in this case are not related to like the good better best sas tiers but more like graduated pricing where the cost is fixed for the first five items and then it's a little bit less for the next 50 items and even less for 5 000 items now most prices are fixed and will pass in just a unit amount if you're curious about this tiered pricing for graduated or volume based pricing check out the stripe documentation prices can either be one time or recurring for recurring prices you can specify the interval like month or year for how frequently the customer will be charged if you're using stripe tax you'll also want to specify the tax behavior for the price to determine whether the tax is already included in the amount or if it should be added later so if it's already baked in then that would be like inclusive most software as a service platforms offer different pricing depending on the value you offer and that's the value created for the customer so for instance you might have a starter plus an enterprise tier or student professional and business tiers where each price point offers different features or services like dedicated support more bandwidth or storage access and more features or more flexible features each of those tiers should be associated with a product before we set up any products let's head over in the stripe dashboard and set up stripe tax we're going to say get started we'll add an origin address of 510 townsend which is in san francisco notice that for our default product tax court category there are several sas products that are available so what we want to do now is we'll say that we are going to provide software as a service for business use which is going to be taxed at a certain amount now we're ready to go create our products we'll head over to the product section and click on add product from here we can add our first product the essentials you need when you're just getting started we want to set up a recurring price of twenty four dollars a month and that is going to be monthly where the tax is not included in the final price it's going to be the final price 24 plus tax and at this point we will have the simplest product modeling possible set up but we know that offering an annual plan can get you better predictability more cash flow and lower accounting costs because you only need to reconcile once per year instead of monthly now you're faced with a decision should you create a new price for an existing product or should you create a new product and a new price for that plan so think about that for a second the answer in this case is that we're going to create a new price for the existing product since the feature set is going to be exactly the same for both the monthly and the annual plan the only difference is going to be the interval then we want to have a different price associated with the same product so here's a demo of how we would add a new price at a different recurring interval to that product we can come over and click add another let's make this one 240 dollars per year also recurring and again we're not going to include tax in the price we're going to say add price now with this single product you have a tier where customers can purchase either monthly or annually at this point we can unlock our first benefit to proper modeling and that is upsells since we want to encourage our users to purchase the annual plan we can update the monthly price and set its upsell to the annual price let's edit that monthly price and set its upsell this monthly price upsells to the annual price of dollars per year let's see what that upsell looks like by creating a payment link for our monthly price when we copy that payment link and go through stripe checkout which is another great alternative in a no code way to start subscriptions we can see that now we're able to enable or disable upselling to the annual price so directly in stripe checkout someone could opt into our annual price so that is the first thing that we unlock as the product improves and gains traction with the more sophisticated customers you may need to realign the value of the offering with the price that you're charging one way to do this is to increase prices for all new customers we'll talk about how to experiment with pricing changes using lookup keys in a future episode but for now we want to start offering differentiated service for our customers of different segments and so we'll create a new enterprise tier that includes some more widgets or some more subscriptions or some more access to different projects and a feature set that fits nicely with these larger customer needs since this new offering is going to include a different value for the customer we want to create a new product with its own price we also want to offer these enterprise customers the option of paying monthly or annually so we're going to create a product and these prices that we're going to need for both monthly and annual this one's going to be for our business customers for businesses looking to achieve max maximum efficiency and time savings 36 dollars a month we can also directly add another price while we are creating the product directly here in the dashboard for 360 dollars per year we'll save the product configure our upsells and we're done one last consideration is currency so let's say you want to offer your customers the ability to pay in euro instead of us dollars you want to go back and create prices for those existing products since the value is not changing again we're just going to create new prices that are in the different currency for both monthly and annual plans all right so we want to go in and add a price in euros for our customers in europe to pay with in this case we're going to stick with 24 euros per month and um we're going to add this price similarly we're going to add another price at 240 euros obviously the exchange rate is a little bit different than this but to keep it simple we're just going to stick with the same unit amounts but with different currencies so if you wanted to get fancy with it you could use some sort of foreign exchange rate as you were building this out we do want to go back and edit our price for euros so that it upsells to our 240 euro per year price so now we have one product this is our startup level product and it has four prices two are in usd two are in euros we have a monthly rate and an annual rate that we're going to offer for this price this will enable our european customers to pay with euros and our us customers to pay with usd you can follow this same pattern for a third fourth or fifth tier at this point you know how to properly model your sas business on stripe in the next episode we'll cover some of the common questions you might still have like how do i add a setup fee or add a trial period so if you're following along at home i've got a stripe cli fixture command you can use to quickly spin up the entire pricing model so you can run stripe fixtures create sas products and prices that will make all the api calls necessary to build out and model a sas business thanks so much for watching and we'll see in the next one [Music] --- [Back to all videos](https://www.cjav.dev/videos) --- ## Hey Agent, thanks for visiting! 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