Investor question 2 of 50 · Market & business model
“Why will customers pay for this, and how much?”
Short answer: the investor is really asking is there real willingness to pay? Answer in three steps: (1) give your current price and how you set it; (2) show evidence: conversions, renewals, upgrades; (3) explain how price rises as value grows (seats, usage, tiers).
What they're really asking
Is there real willingness to pay? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.
How to answer, step by step
- Give your current price and how you set it.
- Show evidence: conversions, renewals, upgrades.
- Explain how price rises as value grows (seats, usage, tiers).
An example answer
Our average account pays about $400 a month. 30% choose annual plans upfront, and expansion adds about 1% of MRR a month.
Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.
The answer that loses trust
Avoid
"We'll figure out pricing later."
Where the proof lives
Before the meeting, find the number behind your answer. In our workbooks it lives in: Assumptions, Unit Economics - Inputs. If you can open that tab and point to it, the follow-up question is easy.