article thumbnail

Days Sales Outstanding Formula: What is DSO and How Do You Calculate It?

Stax

In an ideal world, all customers would pay an invoice the moment they receive it. But in reality, companies often have to spend considerable time and resources chasing down late payments that are stuck in Accounts Receivable. Promptly collecting payments from your customers is essential to run a sustainable business.

article thumbnail

10 Tips to Help Manage the Burn

SaaStr

But public stock prices are way down, and venture capital is much tighter than it was just a few months ago. No matter what the contract says, get the renewal invoice out at least 60 days prior to expiration and ask for payment no later than the contract end date. So for many of us in SaaS, these are still the best of times.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Navigating subscription in the air

ProfitWell

Today, we’re eyeing subscription aviation. And finally, we take a monetization and pricing plunge with Reforge. Your top subscription news. Navigating subscription with Etihad Airways. Because it will make regular, recurring trips easier to manage from both sides. Cutting the security line? Boarding first?

article thumbnail

What Is Optional Product Pricing and How to Use it Successfully

Baremetrics

Optional product pricing is a pricing strategy whereby the core component of a product is sold for a basic price, and a menu of complementary services are offered for a separate fee. Optional product pricing often employs the concept of a loss leader. What is optional product pricing? Table of Contents.

Pricing 98
article thumbnail

What is the subscription revenue model? | ProfitWell

ProfitWell

The subscription revenue model is hardly new. But in the past few years, subscriptions have seen a bit of a resurgence. In fact, you'd be hard-pressed to find an industry that hasn't seen at least one subscription success story: Cars. Even the humble houseplant doesn’t seem immune to the subscription economy.

article thumbnail

What is economy pricing? Definition, examples, and expert opinions

ProfitWell

Whether you know it or not, you've encountered the economy pricing model. It’s a pricing strategy employed by businesses to make generic and commodity goods appealing. Store-brand products and generic medications are some of the best examples of economy pricing at work. What is economy pricing?

Pricing 59
article thumbnail

Ultimate Guide to Surcharges: What is a Surcharge and How Does It Work

Stax

TL;DR Surcharges are additional fees consumers pay on top of the base price of goods or services. Various calculation methods, such as percentage-based, flat fees, tiered pricing, and time-based surcharges, help optimize pricing. Surcharges are additional fees consumers pay on top of the base price of goods or services.