Pricing is the single most impactful item for a SaaS company, but most founders spend the least amount of time on it. Apart from positioning your product, and targeting an audience, it has a massive impact on growth. This session will take a first step into thinking & applying value-based pricing.
Upekkha.in
4. Your current pricing (all annual recurring USD)
4
● What is your highest & lowest pricing tier?
● How much does your best customer pay?
● What is the $$ difference between your best
customer and worst customer?
● What is the current pricing metric?
● When did you last change your pricing?
5. Pricing your product
● Cost based pricing
● Competitor based pricing
● Value based pricing
5
6. Product first vs Pricing first
“Monetizing Innovation”
○ Porsche vs Ford
6
7. Value based pricing
● What is the customer’s KPI/goal?
● What is it worth in time, money, if they reach that
goal?
● What portion of that value did you directly create?
Which cannot be created without you?
● How can you design plans so your best customers pay
more?
7
8. Pricing axis examples
Leading & lagging metrics
● Outcome Metrics: (savings, revenue, bookings, …)
● Pricing Metrics: Usage (API calls, Trucks, …)
● # of users (seats)
● Features: user(s) vs manager vs buyer vs
influencer
9. SaaS pricing impact across the funnel
● Initial revenue
● Usage based increase
● Going up the plan ladder (features)
● Cross-sell other products (for after $1Mn ARR)
9
10. People to follow
● Krish of ChargeBee: @cbkrish
● Patrick of ProfitWell: @patticus
● Madhavan of Monetizing Innovation:
@MadhavanSF
● Tren Griffin of Microsoft: @trengriffin
10