With the impact of analytics driving a pricing revolution in the SaaS space, any company that isn’t regularly reviewing pricing and packaging can almost certainly increase valuation by taking a fresh look at things. And just as pricing has now evolved beyond old school “cost plus margin” pricing that anchors off internal costs, having shifted towards value-based pricing, those of us in client-facing delivery roles are also working to generate, capture and communicate value. For us however, that focus is placed a little further down the line: renewals…
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LATEST BLOGS
7 Steps to define your SaaS Packaging & Pricing (P&P)
In the last decade or so, the land-and-expand software sales mantra has given birth to a wide range of options on how and what B2B software customers buy. Combine this trend with the high switching cost of selecting a wrong packaging and pricing architecture, the task of coming with your Go-to-Market list price is often a daunting one. In this blog, we aim to provide you with 7 steps on systematically approaching this decision…
What is the best subscription term length? 1 month? 5 years?
Companies want to transition to a subscription-based pricing model. Investors love it, valuations are higher. A question we are often asked by software, tech and platform businesses is “can you help us figure out our subscription price?”, skipping straight past “what is the right pricing model & subscription term length?” Ignoring these foundational monetisation questions is why many B2B SaaS businesses…
Your SaaS Pricing Committee: Why, What and How
We don’t invest much time in pricing. The average SaaS company spends less than 6 hours in total on their pricing strategy determining how they (and potential customers) value their services. Pricing is typically perceived as sitting in the intersection of marketing, sales and product, a task to be designated to either product, commercial or sales, rather than a shared ownership…
Go beyond features & functions with a B2B SaaS Customer Value Strategy
At mgpricing, we have worked with over a dozen B2B subscription companies and we have seen that they all share a common goal – sell business solutions with a business value proposition. All of them want to get paid for the effort and investment behind their technology, and the value they deliver to their customers. Unfortunately, many of these companies struggle to succeed…
The Subscription Strategy Encyclopaedia: Packages
SaaS pricing is not just about what you charge, but how you charge. An effective pricing process allows you to grow as your customers grow: rather than the set-it-and-forget it approach to pricing, choosing the right pricing machine means you are constantly optimising your pricing strategy every day…
What does McDonald's teach SaaS companies about pricing?
The McDonald’s Meal Deal is a price packaging strategy familiar all over the world: every customer can recognise the Big Mac, drink and fries as separate product options, but by bundling the three together for a discounted rate, we are encouraged to…
Resist Excessive Price Discounting in B2B SaaS: Standing on the Shoulders of Giants
As explored in the last post, SaaS companies should learn from their experienced B2B counterparts to strive for value-based pricing and avoid spiralling into a price war. So how exactly does a modern SaaS company stand on the shoulders of these B2B pricing giants?
B2B SaaS Pricing: New dog, old tricks?
They say you can’t teach an old dog new tricks, but what about teaching a new dog new tricks? SaaS companies have become the darlings of innovation, embracing the latest technology platforms, new business models and modern marketing strategies – then why are these “new dogs” adopting outdated pricing practices that their traditional industry peers have outgrown 10+ years ago? …