Tom Tunguz

FEBRUARY 19, 2019

Startups are innovation machines. Others want to innovate in every dimension and re-invent every discipline from pricing to marketing to support to customer success. Brad Birnbaum, founder and CEO of Kustomer , discussed the challenges of innovating on two dimensions simultaneously on the [Saastr podcast]().

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Pricing Startup Sales Hiring Innovation 259

Tom Tunguz

JUNE 30, 2021

Since that era, hedge funds have innovated roughly every decade or so. With that backdrop, the first quant funds formed to forecast price swings in commodities and capitalize on correct calculations. And without a doubt, these firms will continue to innovate and push the market forward.

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Innovation Marketing Banking Forecasting 182

Tom Tunguz

AUGUST 8, 2021

Pricing is one of the questions that persist through the evolution of a company. A common topic today in software startup board rooms is: should the company price by seat or by usage? Madhavan has led more than 200 pricing projects across software companies. It’s the canonical book on modern pricing.

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Pricing Startup Strategy Innovation 240

SaaStr

JANUARY 5, 2022

The more established your brand, the more complex your pricing page can be. What makes for a good pricing page? A few thoughts at least — mainly about what to copy from the big leaders, and what to maybe not copy from them: The stronger the brand, the more complex the pricing page can be. You aren’t there yet.

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Pricing Enterprise Branding Innovation 225

Tom Tunguz

AUGUST 28, 2021

Should you price your SaaS per seat or per use? The first thing to state is that massive companies have been built using both pricing structures: Salesforce and Adobe bill per seat while Snowflake and Twilio charge per use. When to use per seat pricing. Would they switch if the pricing weren’t predictable?

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Pricing Strategy Startup Scale 268

FastSpring

AUGUST 19, 2022

According to an OpenView survey, by 2023, 56% of SaaS companies will be using or expecting to test usage-based pricing, which they define as “a pricing model that enables customers to pay for a product according to how much they use it.”. Seat-based pricing (SBP) is a usage-based metric. SaaS pricing is tough to optimize.

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Pricing SaaS Technical Review Forecasting 140

FastSpring

MARCH 9, 2022

Answer: It’s the pricing page. The path to a signup or purchase may include a variety of page views, but it almost always includes the pricing page. In this article, we’ll show you examples from a variety of SaaS pricing pages. 7 SaaS pricing page examples. Add a summary table for pricing plans. How do we know?

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SaaS Payments Pricing Payments Payment Methods 130

SaaStr

MARCH 21, 2019

A few thoughts at least: The stronger the brand, the more complex the pricing page can be. That means their prospects will be more patient with complex pricing. But your prospects may just move on if the pricing page makes it seem too … hard. Innovation is great … just often not on pricing. Prospects need context.

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Pricing SaaS Enterprise Branding 205

Baremetrics

SEPTEMBER 10, 2021

When one company, or a group of companies, has a large enough market share in an industry, it may be able to push the price away from the equilibrium. This is called price leadership. If you’re interested in whether or not your company has the right pricing, or could leverage into price leadership, try out Baremetrics.

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Leadership Pricing Forecasting Customer Lifetime Value 98

Blulogix

NOVEMBER 8, 2023

Transforming the Technology Industry: The Power of Usage-Based Pricing By BluLogix Team The technology industry is in the midst of a profound transformation. Traditional pricing models, such as fixed subscriptions and one-time purchases, no longer align with the dynamic and ever-evolving nature of this sector.

Technology 52

Technology Pricing Payment Features Subscription 52

Subscription Flow

DECEMBER 21, 2023

What can help you the most to fight challenges in the coming year is to follow the SaaS pricing trends. Let us help you know the SaaS pricing trends in the coming year to help you improve productivity and return, but first, it is important to understand what is happening in the market currently. Do not overcharge your customers.

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Trends Pricing Revenue Technical Review 59

Tom Tunguz

AUGUST 10, 2017

Recently, New York seed investor Jerry Neumann spoke on the show and talked about three key ideas on the technology innovation cycle. Interchangeable parts and novel manufacturing techniques reduced automobile prices. Hosted by Patrick O’Shaugnessy, Invest Like the Best profiles investors from many different disciplines.

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Innovation Technology Finance Interviewing 156

Baremetrics

SEPTEMBER 28, 2021

Price skimming is one of the many pricing strategies employed by companies in an attempt to increase their revenue and/or profit. Price skimming is a pricing strategy for when a product enters the market. This pricing strategy is named for “skimming” the top layers of cream from milk. Table of Contents.

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Pricing Strategy Churn Branding 96

Baremetrics

SEPTEMBER 30, 2021

Cost plus pricing is one of the many pricing strategies employed by companies in an attempt to increase their revenue and profit. The basic idea behind cost plus pricing is to base your prices on the cost of production plus your desired profit margin. This makes it a very simple and safe pricing strategy.

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Pricing Outsourced Development Systems Review Strategy 96

Baremetrics

SEPTEMBER 28, 2021

Penetration pricing is one of the many pricing strategies employed by companies in an attempt to increase their revenue and/or profit. Penetration pricing is the strategy of offering extremely low prices when entering a market to entice customers to try a product or service. The advantages of penetration pricing 2.

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Pricing Scale Branding Scaling 90

Tom Tunguz

DECEMBER 31, 2023

This innovation reinvigorates very early-stage IPOs. Record inflows into tokens fuel all-time highs in Bitcoin, Solana, & higher performance L1s who offer better price/performance to market. The fundraising market thaws, but at materially lower prices than the first half of 2022. 3 KnowBe4 4.6 6 Forge Rock 2.3

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AI Search AI Scale Headcount 230

Blulogix

FEBRUARY 17, 2024

The Art of Flexibility: How to Master Dynamic Pricing Models in Subscription Billing By BluLogix Team Adapting to the Pulse of the Market for Maximized Revenue In today’s rapidly evolving digital marketplace, static pricing models are becoming a relic of the past.

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Subscription Payment Features Pricing Marketplace as a Service 52

Tom Tunguz

OCTOBER 26, 2023

In 2021, Amazon announced they had reduced prices on Amazon Web Services 107 times since launch. This drop in prices has grown AWS into a $90b revenue business in 17 years. At those prices, not many transactions are economically viable. In 2021, at the peak, the average quarterly gas fee on Ethereum reached about $37.

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Blockchain AWS Pricing Innovation 244

Andreessen Horowitz

JULY 15, 2020

Marty Makary—surgical oncologist at Johns Hopkins University School of Medicine, and health policy and innovation expert—has long been a passionate advocate for transparent pricing in the healthcare system.

Healthcare 101

Healthcare Pricing Innovation 101

Blulogix

DECEMBER 12, 2023

Why Usage-Based Pricing (UBP)? The Compelling Case for Change By BluLogix Team The B2B subscription landscape whispers of a transformative force – usage-based pricing (UBP). Gone are the days of one-size-fits-all plans and opaque pricing structures. Customers yearn for flexibility, transparency, and a pay-as-you-go ethos.

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Pricing AI Search Subscription Payment Features 59

Tom Tunguz

APRIL 21, 2016

Is there any word that confers some whisper of dark arts than pricing? Or any question that instills less confidence than, “How did you derive your pricing strategy?” ” Many times, startups replicate and tune competitors’ pricing strategies. Madhavan Ramanujam is a pricing expert.

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Pricing Startup Strategy Consulting 204

Blulogix

DECEMBER 7, 2023

B2B Subscriptions in 2024: Embracing a Paradigm Shift with Usage-Based Pricing By BluLogix Team As the clock ticks towards 2024, a seismic shift is brewing in the B2B subscription landscape: the rise of usage-based pricing (UBP). No longer will rigid, one-size-fits-all plans and shadowy pricing structures hold sway.

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B2B Subscription Payment Features Pricing 52

OpenView Labs

JANUARY 13, 2022

Welcome to the third edition of the Pricing Transformations series. Pricing Transformations in 2020. Pricing Transformations in 2021. Pricing models must be adaptable – 4/5 on this. We took off a point as there are still too few people who understand pricing models well enough to make them adaptable.

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Pricing Payment Services SaaS Payments Payment Solutions 82

OpenView Labs

APRIL 8, 2021

The response since the usage-based pricing playbook has far exceeded my expectations. My TechCrunch byline went semi-viral, Bessemer named usage-based pricing part of the “ new normal ” for SaaS go-to-market strategy, and Alex Wilhelm said it’s “ one theme that’s come up time and again ” in public company earnings calls.

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Pricing Scale Subscription Payment Features 97

OpenView Labs

JANUARY 3, 2022

Back in 2015 I published this post “ Your 3 Pricing Strategy Choices: Grow, Skim, or Follow.” In this post, I update the key ideas and introduce a few new ones based on the importance of goal setting and new approaches to pricing and value. Pricing is a critical choice. Pricing strategy selection is a choice.

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Pricing Strategy Innovation B2B 67

SaaStr

JUNE 29, 2023

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. The Year of the Price Hike In 2023, companies face a hard reality –– SaaS prices are rising. Why are SaaS Prices Increasing? weakest link.

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VP of Engineering Trends Cybersecurity Sales Hiring 247

Blulogix

DECEMBER 18, 2023

Usage Pricing: Turning Consumption into Revenue – A Practical Guide to Transitioning to Consumption Subscription Billing By BluLogix Team In the realm of consumption-based billing, navigating the intricate network of data staging and mediation stands as a pivotal factor in driving efficient billing processes.

Payment Features 52

Payment Features Subscription Pricing Revenue 52

Chart Mogul

NOVEMBER 25, 2021

Getting pricing right is one of the most challenging aspects of running a SaaS business. In 2018, ChartMogul went through a pricing migration that heavily impacted our business. In 2018, ChartMogul went through a pricing migration that heavily impacted our business. At ChartMogul, we’ve experienced it first hand.

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Pricing Innovation Onboarding Retention 52

SaaSX

JUNE 6, 2021

Given the widespread recognition that value-based pricing drives faster growth and higher returns, why do so few companies apply it? Use the costs to set a price (cost-plus pricing). Use the costs to set a price (cost-plus pricing). Hopefully, some customers will buy at that price. Set the wrong price.

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Pricing Finance Metrics Innovation 59

Blulogix

NOVEMBER 8, 2023

How Your Usage-Based Pricing Strategy Can Help You Stay Competitive in the Crowded Market By BluLogix Team In today’s fast-paced business landscape, staying competitive is more challenging than ever. One powerful tool in your arsenal is a well-crafted usage-based pricing strategy. Usage-based pricing caters to both.

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Pricing Strategy Scale Marketing 52

Tom Tunguz

MARCH 17, 2016

In these markets, concepts like Westendorp Price Sensitivity and conjoint analyses work. In the Innovator’s Solution , Christensen proposes the idea of competing against non-consumption. What set of users who were not previously able to use software to satisfy a need or achieve of objective will be served with this innovation?

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Innovation SaaS Payments Payment Solutions SaaS 100

SaaStr

FEBRUARY 15, 2024

Offering a suite of solutions dedicated to supporting multifaceted billing needs and revenue operations, I believe Metronome serves as the perfect scaling partner for innovative businesses and software companies. What’s your sweet spot for investing — check size, stage, type of deal? And how big is your current fund?

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Scale Software Review Payment Features AI 239

Tom Tunguz

SEPTEMBER 11, 2014

Cloud computing prices are hurtling to zero. AWS has decreased prices for EC2, elastic compute cloud, and S3, simple storage service, 42 times in eight years. Meanwhile, gigabit internet has been deployed in about 8 cities in the US so far with another 12 to 15 slated for next year , typically at $70-$100 monthly price points.

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Innovation Machine Learning Artificial Intelligence Scale 100

SaaStr

FEBRUARY 7, 2023

Take a look at just some of the topics and mentors hosting Braindates: Core metrics to track for SAAS with Tarush Aggarwal, Founder & Ceo at 5X Pricing as a growth lever – How, what, why? The goal is to help each other learn something new, find mentorships, create partnerships, and exchange strategies.

VP of Engineering 247

VP of Engineering Technical Cofounder Outsourcing Services CTO Coach 247

SaaStr

JUNE 19, 2023

A bit more here: The 10 Things I’d Tell My Younger CEO Self to Do Better Next Time | SaaStr and 10 Things Maybe Not to Do In The Earlyish Days | SaaStr Dear SaaStr: How do companies determine what price to sell something at? The pricing of comparable products. Identical pricing. You price higher than the comps.

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Scale Pricing Innovation Revenue 219

SaaStr

JULY 22, 2022

With vendors in SaaS all beginning to or looking to raise prices, in some cases for the first time ever, really … inflation may consume a lot of the expansion budget in SaaS next year. But if all the top vendors raise their pricing 10%, that could consume a large chunk of that increase. For now, both are true.

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Innovation Pricing Software SaaS 267

SaaStr

JANUARY 9, 2022

Pretty Much Every App With an Enterprise Edition Uses “Contact Me” Pricing. How To Innovate Faster with Community: Insights From GitLab CEO Sid Sijbrandij. Top Blog Posts This Week: Why a Great Rep Can Close 9x More Than a Poor Rep, and Even 2.5x More Than a Good Rep. Why The Greatest Sales Teams Just Kill It On Dec 31.

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Scale Innovation Scaling Enterprise 273