SaaStr

MARCH 26, 2024

In it, we cover the SaaS community’s most pressing questions about Artificial Intelligence (AI), pricing, efficiency, and funding. The average public SaaS company is marching toward $400k in revenue per employee. Is SaaS dead right now? Not literally, but is the energy there for any SaaS product that isn’t AI?

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SaaStr

JULY 24, 2023

So price increases have been the name of the game in SaaS for the past 12 months, in many (not all) cases to help make up for slowing growth: Zendesk up 16% Salesforce up 9% Google Workspace up 20% HubSpot up 12% Webflow up 16% Shopify up 33% Slack up 10% And some of them like Slack and Salesforce hadn’t raised list prices in quite some time.

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Pricing Software Review Churn SaaS 209

SaaStr

NOVEMBER 1, 2021

David Skok of Matrix Partners and Key Banc have been doing an incredible SaaS startup survey for many, many years and the latest edition is out here. Only 41% of the SaaS companies in the survey use per-seat pricing. But it’s a good reminder that per seat pricing is great — when it’s what the customer wants.

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Pricing SaaS Startup Metrics 222

Predictable Revenue

JUNE 10, 2021

Ajit is the author of Price To Scale and is a SaaS Product Marketing veteran who has helped firms such as Narvar, Medallia, Helpshift, and Feedzai differentiate their products, grow revenue, and win. The post How to Price your SaaS Product appeared first on Predictable Revenue.

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Pricing SaaS Scaling Product Marketing 165

SaaStr

DECEMBER 21, 2020

Q: How is the ‘decoy effect’ used to increase add-on and bundle sales in SaaS? It’s an interesting question in SaaS. Do we see the classic ‘decoy effect’ — vs. just highlighting the most popular version — on SaaS pricing pages? Boy, the Dropbox pricing page has changed a lot.

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Pricing Scale SMB SaaS 270

FastSpring

NOVEMBER 8, 2021

98% of SaaS companies experienced positive growth when they made core changes to their pricing models in 2020. As the B2B world continues to integrate SaaS, pricing models are adapting as well. Pricing Model #1: Segment-based. Pricing Model #1: Segment-based. Pricing Model #2: Usage-based.

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SaaS Payments Pricing Merchant Services Payment Solutions 111

Chart Mogul

SEPTEMBER 15, 2023

For years we have been reading and hand-picking the best SaaS blog posts to share with 24K+ SaaS Roundup subscribers. Subscriber or not, anyone who wants to increase their SaaS knowledge will benefit by reading the curated posts below. In all seriousness though, that’s kinda what Horizontal SaaS promises (or tries) to be.

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Scale Underperforming Technical Team Sales Hiring SaaS 52

SaaStr

MAY 8, 2024

As a SaaS veteran who built and sold a software company for nine figures, invested in startups since 2013, 10x-ing his fund, and continues to build a powerhouse community of SaaStr fans, he offers some hot takes on the communities’ burning questions. The average public SaaS company is twice as efficient. Let’s start with the meta. “I

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Metrics Scale Sales Hiring SaaS 209

SaaStr

SEPTEMBER 28, 2022

SaaS is getting more expensive, for a variety of reasons. We put up a quick survey on LinkedIn to see how you were all thinking about raising prices — and the majority of you said you were planning to in 2023: It’s a complex topic. Most of us over time end up driving up our ACVs, but it’s not always though price increases.

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Subscription Flow

JANUARY 3, 2024

Consider the potential for growth if you make your pricing model a consistent priority for your company. Most SaaS companies, on the other hand, treat pricing as an afterthought, setting it and then forgetting about it, rather than viewing SaaS flexible pricing strategies as ongoing processes critical to their success.

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Pricing Payment Features SaaS Marketplace as a Service 52

SaaStr

JUNE 10, 2023

If you do raise prices, how about also adding more value than price increase? 2023 has become the year of not just the aggressive price increase, but the threatening renewal conversation. 2023 has become the year of not just the aggressive price increase, but the threatening renewal conversation. At least, feel better.

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Pricing SaaS Marketing Customer Success 181

SaaStr

JANUARY 10, 2022

Q: How can enterprise software (SaaS) pricing be optimally defined, taking into account that two of three versions of the software can be offered, e.g. ‘small’, ‘medium’, ‘large’? different enterprise products … each with different approaches to pricing! Not on pricing.

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Pricing Cloud Enterprise Software 223

SaaStr

MAY 24, 2024

So the #2 topic in SaaS today is probably profitability and efficiency. #1 ARR: SMB leader HubSpot Enterprise vertical SaaS leader Veeva And collaboration leader DropBox All at the same ARR, but with very different growth profiles, and profitabilty. It’s trading at one third the price of the HubSpot and Veeva.

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SaaStr

NOVEMBER 10, 2022

So our economy is going through some unpredictable transitions, with Cloud and SaaS companies powering through with still-strong growth and unemployment remaining at near record lows, while inflation, interest rates and more batter us at the same time. The post We’re All Paying the Price Now for Massive Overhiring appeared first on SaaStr.

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Sales Hiring Pricing Cloud Startup 273

SaaStr

FEBRUARY 2, 2022

But it still has Free editions and supports the tiniest price points. In SaaS, if you have an agile enough team, you can copy them. That doesn’t happen in SaaS. Really, once you have something in SaaS, it’s up to you to stay in the game. They keep you in the game. A great VP of Product can help a lot.

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Scale Sales Hiring B2C Scaling 212

SaaStr

JUNE 29, 2023

SaaS buying has changed. As buyers grapple with expanding technology, higher prices, and a need for efficiency, SaaS companies need to deliver what their audience is looking for to win in the market. SaaS Market Snapshot In Q1 of 2023, Vendr gathered data on SaaS Spending and yielded some pretty interesting results.

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VP of Engineering Trends Cybersecurity Sales Hiring 240

SaaStr

MARCH 29, 2024

Is a SaaS startup at $10m ARR growing basically 0% objectively worth $80m today? The post Can You Still Get Acquired for a Decent Price if Growth Has Slowed or Even Stopped? So in the end, they bought this smaller competitor that was at $10m ARR … but growing basically 0%, albeit cash-flow neutral. But barely growing at all.

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Pricing Scale Startup Acquisition 239

SaaStr

JULY 10, 2021

Q: Dear SaaStr: Should I Publish My Pricing? Transparent pricing has many advantages: It makes the sales process simpler. And it places you app in pricing context with other apps. Do pricing right, and a number of customers who aren’t a great fit qualify themselves out. If you aren’t sure — then yes.

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Scale Pricing Enterprise Scaling 277

SaaStr

AUGUST 27, 2020

Q: Will SaaS prices drop due to competition from developing countries? Now it’s just a cost-effective suite of SaaS products, at basically the same prices as other lower-end competitive products: Here’s the thing: Most SaaS products aren’t really commodities. Most SaaS products start out cheap. Not at all.

Scale 174

Scale Pricing SaaS Branding 174

SaaStr

JANUARY 3, 2022

With the rise of “Product Led Growth” as such a key concept in SaaS, it brings up an age-old question in business software: Should all pricing be transparent? Can you even have a mostly self-service motion in PLG with “Contact Me” in your pricing? It’s a mix.

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Pricing Enterprise Cloud B2B 237

SaaStr

MARCH 18, 2024

Dear SaaStr: If you were hiring a head of sales for a high-priced, niche B2B SaaS product, would you focus on general B2B SaaS sales experience or on market/customer knowledge, assuming it will be very difficult to find a candidate with both? This is the scenario when the trade-off is the most acute. See who does better.

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Sales Hiring Sales SaaS B2B 272

SaaStr

AUGUST 26, 2022

Series B and later prices are down across the board from their peaks in 2021 and Q1’22, down 30% or more. Fenwick’s blended numbers see overall Series B and later round pricing down about 30%. #3. But overall, valuations and prices post-Series A still remain way ahead of where they were up until 2018.

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Pricing Social Media B2C Startup 302

SaaStr

OCTOBER 27, 2021

Dear SaaStr: Why are pricing tiers so effective? I’m no pricing psychologist, but a few thoughts: Buyers like a >few< choices. Tiers have been established for decades and are a well-understood process for presenting options where pricing can be at least semi-transparent. The post Should You Have Pricing Tiers?

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Pricing Innovation Enterprise Product Marketing 249

OpenView Labs

JULY 2, 2020

Pricing is a SaaS company’s most efficient profit lever, but it’s also one of the easiest things to screw up. Nailing your SaaS pricing strategy requires more than just picking the optimal price and forgetting about it. SaaS Pricing and COVID-19. SaaS Pricing Basics.

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Pricing SaaS Payments Payments SaaS 135

SaaStr

APRIL 30, 2022

So the first question is what made SaaS so successful. If you kind of that question, thinking about the stakeholders and the decisions and companies of using SaaS products, there’s kind of three types. Customers love SaaS products and tools because it simply works. Why do developers love SaaS products? Why is that?

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SaaS Payments Metrics Payment Methods Scale 236

Subscription Flow

MAY 22, 2024

First impressions are rarely the last impressions, but they can prove to be just that for your company if you do not strategize a high customer lifetime value (LTV) for SaaS businesses. Why is CLTV an important SaaS metric? Let’s imagine a SaaS company called “ConnecTech” that offers project management software for small businesses.

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Customer Lifetime Value SaaS Payments Technical Advisors Payment Solutions 93

SaaStr

JANUARY 4, 2024

In 2022, revenue growth held up for many leaders, but share prices and multiples cratered. It was mixed actually, even if startups didn’t seem to get a breather, it wasn’t so bad for most public SaaS leaders. And yet … it wasn’t all bad, for the bigger guys: The median SaaS and Cloud stock was up 41% in 2023!

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Startup SaaS AI Pricing 174

User Pilot

MARCH 14, 2024

Looking for an effective SaaS analytics tool and wondering if Heap is the best option for your SaaS company? In this article, we’ll delve into precisely that – helping you determine whether Heap is the ideal choice for your SaaS analytics needs. Looking for a Better Alternative for SaaS Analytics? Try Userpilot!

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Technical Review Software Review Systems Review Pricing 52

SaaStr

OCTOBER 25, 2021

Q: What billing or pricing tactic have you found in the end just wasn’t worth it? “Unless your product has a huge TAM to cast your net in, no-touch onboarding, and an obvious first “wow” moment you’re trying to reach, free trials and/or freemium pricing does not work well.” Jason, ed. : Jason, ed. :

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Pricing Scale Enterprise Onboarding 286

FastSpring

OCTOBER 10, 2022

In September, Slack rolled out its first pricing change since the company launched in 2014. Slack announced its pricing change in a blog post in July, and pricing changes took effect in September. In this piece, we break down some of the strategies Slack employed to successfully roll out its new pricing.

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Pricing Interviewing Retention Strategy 145

SaaStr

NOVEMBER 30, 2020

Now … On that deal … go quote twice your highest price ever. And if you have a true solution, that really makes an impact … you’ll probably get the 2x pricing. 200k your new enterprise price point, not $100k. Double Your Pricing. It’s goes like this: First, who’s your largest customer?

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Pricing Sales Hiring Engineering Enterprise 289

SaaStr

NOVEMBER 17, 2023

So one thing that has exploded in SaaS in the past decade is the role of Private Equity buying both public SaaS companies (to take them private, “fix” some metrics, and IPO or sell them again), and generally later-stage private SaaS companies. The prices would be lower today for the latter two I suspect.

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AWS SaaS Pricing Acquisition 245

SaaStr

SEPTEMBER 19, 2023

Many of the fundamental business models that were once engraved in the SaaS playbook are now changing thanks to a tougher macro environment and a maturing market. PST, Stephanie Opdam, Partner at Notion Capital, shares four business model changes that will allow SaaS companies to build resilience and staying power over time.

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Business Model SaaS Payments Payments Headcount 246

SaaStr

AUGUST 30, 2020

For most of us, as we build up our confidence, the best initial pricing strategy to start is the Low End of Normal. There is no commodity pricing in SaaS. Price at 80% of that, to start. If that looks too low, raise the price a smidge. Other strategies include: Identical Pricing. Yes, pricing matters.

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Pricing Scale Enterprise Branding 260

OPEXEngine

JUNE 11, 2020

Every few months I take a look at the top read blog posts on OPEXEngine, to make sure I have a solid understanding of the topics that you are looking for more insight on. As a result, I decided to share with you a few of our Not-to-be-Missed blogs. Best SaaS Blog Posts You Shouldn’t Miss.

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SMB SaaS Benchmarks Subscription 59

SaaStr

MAY 27, 2022

They aren’t scientific, but they do poll out 25,000+ LinkedIn followers, who consist mainly of SaaS executives. Notwithstanding the drama in the public markets, most SaaS companies and startups are growing faster than ever. #6. 59% of you have raised prices this year. So there’s something to them. At least. #23.

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Sales Hiring Pricing Scale Interviewing 287

Blulogix

JANUARY 16, 2024

Understanding the Benefits of Usage-Based Pricing By BluLogix Team In the fast-paced and ever-changing world of modern business, the ability to adapt and be flexible is crucial for thriving. This is especially true in the realm of pricing models, where a one-size-fits-all approach often falls short.

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Pricing Scale Telecommunications Subscription 52