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PricingSaaS

603 members • Free

15 contributions to PricingSaaS
Main criteria for price adjustment/increase
Hey, community. Dealing with the (annual) challenge of price adjustment in a SaaS B2B company. Would like to know if someone could share successes and errors in choosing criteria to calculate adjustment. So far we consider inflation rate (I'm based in Brazil), taxes variation, US dolar variation and also a score built based on product's improvements in the last yar. Competitor analysis is a complement, but not very reliable since some make their adjustments after us. Hope to count on the group experience to improve my strategies. Thanks in advance!
1 like • Feb 12
@Ulrik Lehrskov-Schmidt A light went on in the last 20 seconds. Regular pricing increases make sense as it creates a muscle in the organization to get used to handling this. Makes complete sense, never realized 🙏
Trend-watch: Baby steps toward Outcome-Based Pricing
Happy Friday, y'all! Wanted to share a trend we've been seeing in PricingSaaS and get feedback from this group. TLDR, we're seeing SaaS companies take baby steps towards outcome-based pricing. A few examples below: - Chili Piper introduced Add Ons that do work for SDRs and AEs - Confluence introduced Automation Rule run limits across all plans Both of these additions help do actual "work" for users, but are still offered within the structure of seat-based pricing. On first look, it seems like a more gradual way to shift into outcome-based pricing rather than ripping the band-aid off. Curious what others think?
1 like • Feb 10
Hi Rob, good point. It is often hard to truly go after outcome pricing. After doing multiple repricing initiatives, I found that anchoring your price to the outcome often gets push back. If you look at all the things your customer brings into the mix to get to the outcome, let's say people, content/data, infrastructure, processes, training,... all those are easy to understand anchors for your pricing, as you can put a ROI against them and proof where you gain your clout. Anchoring your pricing on the outcome, is often felt as not correct by the customer as they themselves have worked (decided) on all those parameter, making it tough for them to accept you taking credit, thus anchoring your price against it. It is possible to do outcome based pricing. I have clients that successfully do so, they have heavily invested in sales enablement to help defend the proposals. Typical large ticket b2b sales. It is hard work, to get that extra ;)
Two or more pricing models
Currently, have a user based pricing model for our B2B SaaS. An association with several Micro business members prefers a business or location based fixed pricing. Should we agree for location based pricing for micro business owners ? Our mid sized businesses prefer a user based pricing. Should we support both pricing models and give a choice to customers? What other points should we consider while making our decision?
1 like • Feb 3
Hi Rajesh, without knowing a lot about your solution, this springs to mind: You can do perfectly different pricing models for different businesses, as long as you can clearly draw a line (fence them). Let me give an example of a recent example of a HVAC asset management solution I did. 4 dimensions were considered: - Users (most obvious one - as everybody does this_) - features ( which expanded in a good/better/best (GBB) scenario) - installations - locations We went for 2 models Model A: locations and installations and GBB features Model B: locations and GBB features Users were not a valid metric, it would only favor the solution if the customer onboarded as much users as needed. How do we draw the line between model A and model B? Mainly on the business critical factor of the assets to the company. Business critical HVAC, means we go for model A. think datacenters - lof of HVAC - few locations, or supermarkets - business critical HVAC, critical HVAC and lot of locations thus model A. On the other hand we had retailers like shoe and clothing stores that need the solution, but the HVAC is not that business critical. Value is in somebody having all information in one place. Here we go for Model B. Only monetize on locations and GBB feature selection. On top some add-ons were defined that could be relevant for any type of customer, independent of their maturity. Think ESG reporting,... We made sure it was easy for sales to categorize the potential customer, so they can present an easy to understand proposal. I agree that having more price options potentially leads to more commercial debt, but more importantly never present your customer with your own internal complexity, too often pricing is unclear for customers, because we fail to make upfront decisions for them.
PricingSaaS: welcome Rob & John as new community owners!
Big news for the community everyone ! This community started as a let's-just-try-it idea on the back of a few webinars I held in the fall. Then we grew to 500+ people, and I could immediately sense two things: 1) There was a lot of people who were looking for a SaaS pricing community. 2) I was not the right person to drive that. Enter: @Rob Litterst and @John Kotowski from PricingSaaS.com Rob and John have been SaaS operatives for years and have been building the pricing intelligence tool behind PricingSaaS that monitors all public SaaS pricing pages. We all shared the idea of building SaaS pricing as a field and give SaaS operators a clear roadmap on how to 'do pricing'. But Rob and John was looking for a model to take PricingSaaS to the next level - from 'just a newsletter' to something that could really solve that problem. And this community is just that. So effective as of today Rob and John (and PricingSaaS) will take the reigns and bring this community forward. What does that mean for you: - Expect more content (a lot more) - Expect actual moderation and day-to-day interaction. - Expect the community to grow an welcome a lot more people - Expect me to actually give a lot more to the community : I'm going to support the weekly and monthly content production plan of PricingSaaS. In short: expect this to be the absolutely, hands-down, no-comparison place to be for SaaS pricing. I couldn't be happier for this!
3 likes • Jan 23
Awesome news @Ulrik Lehrskov-Schmidt. I'm very much looking forward to where @Rob Litterst and @John Kotowski will take this.
The role of packaging when using a credit based price model
For those of you with experience using credit based price models, I'm curious what you're perspective is on how packaging fits into the broader monetization strategy. I ask because if you're using a credit based price model, you presumably have a lot of flexibility with monetizing the usage of various areas of your solution. In that world, limiting access to features through packaging doesn't seem like it really has a place. I'd much rather focus on giving my customers access to all the features they need and encouraging adoption/usage to drive up credit consumption. Am I thinking about this correctly? Thanks! Steve
0 likes • Nov '24
Hi @Steven Meyer , you still have to sell the new/other features, as in convince the customer to start using them. Just giving them all functionality and assuming they figure it out on their own will not always be successful. Like you correctly statement you need to focus on encouraging them on adoption/usage. For me packaging here still has a place. Packaging is strongly related to the maturity of your user, where do we start and what are the next steps they should be taking or who is the next user/department we should onboard. So in that case we still need to the packaging exercise, but maybe we call it the customer success playbook then ;) Even when working with credits based pricing models, we work out packaging options, to facilitate easier thus faster sales.
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Maarten Laruelle
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@maarten-laruelle-5498
As the founder of Tsjirpa, I bring over two decades of strategic and operational expertise to the forefront of business scaling and market adaptation.

Active 214d ago
Joined Jul 29, 2024
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