Howdy pricing people! Last week's Office Hours was a blast. Huge thanks to the folks that attended and asked such thoughtful questions. For those who couldn't make it, I wanted to share the top 5 takeaways that resonated most: 1️⃣ Enterprise Accounts Are Systematically Underpriced Your largest accounts are often your most mispriced, and not by accident. Ulrik identifies three structural reasons: - They were won when your product was less mature, forcing bigger concessions - They had the most sophisticated procurement you'd faced at that point - You have the fewest "at bats" with enterprise deals, so you're essentially flying blind The implication: don't assume your biggest customer represents your pricing ceiling. They likely represent your biggest historical discount. 2️⃣ You should Build "Enterprise-Only" SKUs You'll Rarely Use Standard pricing is designed for 98% of customers but may only capture 50% of total value. For the top 20 accounts, Ulrik recommends creating specialized monetization tools: - Commercial SLAs (custom billing, multi-entity invoicing, contract flexibility) - Enterprise service tiers with dedicated support - Usage limits on legal entities or deployments These can shift the revenue mix so that your core metric (price per seat, API call, etc.) becomes only 30% of the deal—with the other 70% coming from enterprise-specific add-ons. 3️⃣ Validate Price Increases Through New Sales First When testing a 10x price increase for enterprise, don't start with your existing flagship accounts—your team will fold if they push back. Instead: 1. Test new pricing on prospects in your pipeline (it's emotionally easier to lose money you never had) 2. Close a few new accounts at the higher price point 3. Then approach smaller existing customers and roll them up 4. Finally, go to your largest account armed with proof: "Four accounts smaller than you are paying twice as much" 4️⃣ Horizontal Products Must Accept Value Leakage, Or Go Vertical

Hey everyone, happy 2026! I am currently digging into credit models and trying to implement a specific setup that Ulrik advocated for. The core idea is giving all credits upfront for the billing cycle but letting them roll over into the next cycle. I am sold on the psychological upside for pricing behavior, but the accounting team is pushing back. I am struggling to find exact matches. I usually just see these two credit models: - All credits at the start of the billing cycle but they expire at the end (max 12M lifetime) - Credits given on the 1st of every month with a rollover cap (usually 2x monthly allowance) Does anyone know of any well-known SaaS companies doing the specific combo of credits upfront + 24-month rollover?

Howdy Pricing People 👋🏼 There's a fundamental tension in SaaS I can't stop thinking about: Every SaaS company wants an AI story right now. To have a credible AI story, people need to be using your AI features. If people are using your AI features at scale, your margins will take a hit. Nobody wants margin erosion because we're still valuing SaaS companies on metrics built for the previous generation. The short-term playbook says protect your margins. The long-term playbook says invest in AI or get left behind. They don't reconcile. I'm genuinely curious how you're all thinking about this: - What should SaaS companies be doing right now? - Seemingly everyone is turning to credits as a hedge to both tell the AI story and maintain margin control. Are there other strategies SaaS companies should consider? - Does something fundamental need to change in how we evaluate these businesses? Drop your thoughts below. I'll be digging into this in this week's newsletter, and would love to share perspectives from this group. 🫡 Rob

Does anyone have any benchmarks on what hospitals are willing-to-pay for SaaS Medtech / HealthTech products? This SaaS product provides analytical and predictive support across five hospital domains - Patients, ER, Beds/Wards, Surgery/Theatre and Outpatients. I'm particularly interested in "cost-per-head-of-population" or "cost-per-hospital-bed" metrics, which would provide alignment with activity-based funding models in public hospitals. There may be others...? Also interested in metrics for private hospitals (if / where different). DM's welcome if you prefer. Thanks in advance.

Back with another question for the pricing experts! Chatting with a pricing leader who's looking to create a clear framework for when something should be a standalone product vs. an Add-On for an existing product. Curious how others have thought about this? Would love to see any frameworks or hear any anecdotes from past experiences.