SaaS Profitability & Pricing Strategy Analysis

Pricing Strategy and Profitability Analysis for a SaaS Platform

Example SaaS Platform: EasyChair

Important Note: Please use EasyChair as the SaaS platform for this case study. Analyses based on other
platforms will not be considered during evaluation.
Step 1: Pricing Strategy & Cost Estimation
You are required to design a logical and structured pricing strategy. Clearly explain how you
arrive at the final selling price.
1. Cost Estimation (Project Cost Breakdown)
Estimate the total project cost, considering (but not limited to):
 Manpower Cost
o Product management
o Software development
o QA/testing
o Support & operations
 Third-Party & Technology Costs
o Cloud infrastructure (AWS/Azure)
o Tools & licenses (MS Suite, analytics tools etc.)
 Fixed & Variable Costs
 Legal & Compliance Costs
 Marketing & Sales Costs
 SG&A Costs (Sales, General & Administrative)

 After-Sales Support & Maintenance Costs
 Miscellaneous & Contingency Costs
 Alternative Cost Scenarios (best case / realistic / worst case)
Assumptions must be clearly stated and logically justified.

2. Pricing Model & Selling Price
 Define the pricing model
o Subscription-based
o Cost per user
o Tiered pricing
o Hybrid model (if applicable)
 Derive the final selling price
 Explain why this pricing model is suitable for the platform and market

Step 2: Profitability & Business Metrics
Perform a profitability analysis and clearly explain the logic.
Key KPIs to include:
 Revenue
 Turnover
 Gross Margin & Net Margin (estimated)
 ROI (Return on Investment)
Also present:
 Estimated customer base
 Expected margins
 Scalability of the business model

Step 3: Business Model Overview
Briefly explain:
 Current or proposed sales/business model
 Target customers

 Value proposition
 Monetization strategy

Step 4: Presentation Requirements
 Maximum 10 core slides with clear message
 Additional backup slides allowed for explanation
 Slides must be:
o Clear
o Sharp statements and facts
o Logic-driven
o Well-structured

Step 5: Interactive Dashboard (Mandatory)
You must create a functional and interactive dashboard covering:
 Pricing strategy
 Cost structure
 Profitability KPIs (Revenue, ROI, Margins, etc.)
Dashboard Expectations:
 Must be interactive
 Must be demonstrable
 Focus on logic, structure, and usability
 Must be user friendly
Preferred Tools:
 Python
 Power BI
 Excel
 Any other user-friendly tool
 You may also build your own tool

The dashboard must be accessible