How to analyse competitor feature sets and pricing
Understanding your rivals' offerings allows you to identify market gaps and set a price point that reflects your unique value.
The Bottom Line
To position your SaaS effectively, create a spreadsheet that maps out exactly what your top three to five competitors offer and what they charge. Focus on identifying 'white space'—features that customers are asking for in reviews but your competitors lack—to give your business a competitive edge in the UK market.
Step 1: Identify Your Competitors
Start by identifying who else is solving the same problem you are. Look for two types of competitors:
- Direct Competitors: Companies offering a very similar software solution to the same target audience.
- Indirect Competitors: Businesses that solve the same problem using a different method (for example, a complex Excel template vs. your automated software).
Step 2: Build Your Comparison Framework
Open a spreadsheet and create columns for the following categories. This structure allows for an 'apples-to-apples' comparison:
| Category | What to Look For |
|---|---|
| Core Features | What are the 'must-have' tools included in every plan? |
| Pricing Tiers | Do they charge monthly or annually? Is there a free tier? |
| Target Audience | Are they aiming at freelancers, SMEs, or large enterprises? |
| Marketing Strategy | How do they talk to customers? (e.g., professional and corporate vs. friendly and casual). |
| The 'Hook' | What is their unique selling point (USP)? |
Step 3: Deep Dive into Pricing
In the UK, software pricing is often sensitive to business size. Note whether your competitors use per-user pricing, flat-fee subscriptions, or usage-based pricing (e.g., cost per 1,000 emails sent). Pay attention to whether their advertised prices include or exclude VAT, as this impacts the perceived cost for small business owners who may not be VAT-registered yet.
Step 4: Identify Market Gaps
Look for patterns in your spreadsheet. If all competitors are targeting large corporations with high price points, there may be a gap for a 'lite' version for UK sole traders. Alternatively, if every competitor has a messy user interface, you could win customers by focusing on superior design and ease of use.
Tip: Read competitor reviews on sites like Trustpilot or G2. Look for common complaints—these are your opportunities to provide a better experience.
Best Practices
- Don't just copy: Your goal isn't to mimic their pricing, but to understand the market standard so you can justify your own rates.
- Check 'Trust' factors: Note if they offer UK-based support or have ISO certifications. For UK B2B customers, data residency and local support are often major selling points.
- Keep it live: Competitors update their features and prices regularly. Revisit your spreadsheet every six months to stay relevant.
Created by hatch. • Updated on April 28, 2026