Pricing Formulas 101: Everything You Need to Know

Rebilly | Insights Into Subscription Billing

Choosing a pricing formula is one of the first — and most important — steps when creating a pricing plan. In addition to understanding the basic pricing formulas available, you need to know how to combine those into a value-based pricing structure for your subscription business.

5 Reasons Not To Raise Prices on Existing Customers. And 2 Better Ways to Do It Anyway.


I remember the first time I tried to do the Old Price-Raise-Without-Notice tactic. But as time went on, we got a bit better at pricing ?? Just to increase Qualcomm to the same pricing everyone else had at their bracket. I canceled the price increase.

What do you think makes a good SaaS pricing page?


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.

Should Your Startup Differentiate On Pricing?

Tom Tunguz

Others want to innovate in every dimension and re-invent every discipline from pricing to marketing to support to customer success. At the outset, Brad also sought to change the pricing model. So pricing’s a really difficult thing, right? Startups are innovation machines.

SaaStr Podcast #211: The Ultimate Guide To SaaS Pricing From Investors @ Benchmark, Matrix, Upfront Ventures & Operators @ Figma, Snyk and Kustomer


In Today’s Episode: * David Skok , General Partner @ Matrix Partners: Why does David believe that all good products have at least one variable pricing axis? Chetan Puttagunta , General Partner @ Benchmark: Why does Chetan believe we have seen a strong decline in the per seat pricing model?

Fact or fable: the pricing power of 9


On this episode of the ProfitWell Report, Ria Lao , Founder and CEO at GroupStar , has a fascinating question that you've probably thought of at some point: Should you end your subscription price in 9? One of these tricks is to end your prices in 9 rather than a 0 or a 5. So to answer this week’s question, we designed a pricing experiment with just over ten thousand potential buyers. The theory behind ending your prices in a 9 actually stems from a J.C.

How do you price your SaaS product while finding the Product market Fit?


If your app is about as valuable as Box, then price it like Box. If your app is about as valuable as Twilio, then price it like Twilio. They are used to it, and used to certain organic price points. Later, you can raise prices and optimize. Just start with comps.

Best SaaS Pricing Pages – 4 Key Examples From Crazy Egg Experts

The Daily Egg

Source Service as a software companies had better put their best SaaS pricing pages forward if they hope to stay on top of the competition. The thing is, it’s not easy developing the perfect pricing page, no matter what type of service you offer.

The Ultimate Guide to SaaS Pricing Models, Strategies & Psychological Hacks


Few things impact revenue as much as your pricing. And yet, the average SaaS startup spends just six hours on their pricing strategy. the pricing strategies you'll use to achieve your growth goals. the psychological pricing tactics you'll use to fine-tune your price.

How To Simplify Non-Transparent Pricing: Assume Everyone Knows What Everyone Else Pays


Now being on the buying end of several products with “Contact Me” pricing, I’ve found many reps (especially more junior ones) very aggressive on the lack of transparency in non-transparent pricing.

Value Delivery Patterns Shape Your Pricing Choices

OpenView Labs

The when becomes a critical input into designing your pricing model. Working with a large B2B SaaS company that has a long implementation and configuration cycle, we uncovered contradictions between their pricing and how the customer was getting value. Interested in pricing issues?

17 Experts Share Their Best SaaS Pricing Strategies


Small improvements to your SaaS pricing strategy can have a huge impact, on customer signups, MRR, and the overall growth of your business. and somehow come up with a perfectly optimised price.

IBM overhauls mainframe-software pricing, adds hybrid, private-cloud services

IT World

First of all, the company switched-up its 20-year mainframe software pricing scheme to make it more palatable to hybrid and multicloud users who might be thinking of moving workloads off the mainframe and into the cloud.

Just Where Are SaaS Companies Priced After the 2018 Correction?

Tom Tunguz

Just where are we pricing SaaS companies today? Then prices began a long descent into the February nadir at 3.3x These are exceptional businesses growing at exceptional rates trading at exceptional prices. Reading the news in the past week made me wonder.

Pricing at a PLG Company with Figma’s CCO [Podcast]

OpenView Labs

Amanda Kleha has been involved with pricing at PLG companies like Zendesk and Figma. The post Pricing at a PLG Company with Figma’s CCO [Podcast] appeared first on OpenView Labs.

The nuances of changing pricing: How SaaSquatch’s Will Fraser decided on a price increase, got his team onboard, and increased opportunities in the process

Predictable Revenue

The post The nuances of changing pricing: How SaaSquatch’s Will Fraser decided on a price increase, got his team onboard, and increased opportunities in the process appeared first on Predictable Revenue. On this edition of The Predictable Revenue Podcast, co-host Collin Stewart welcomes Will Fraser, Chief Executive Officer of referral platform SaaSquatch.

MAP Pricing vs. MSRP: What’s the Difference?


“What’s more important for us to develop for our products - MAP pricing or MSRP?”. MAP Pricing

Ten Year's Worth of Learnings About Pricing

Tom Tunguz

Last week, I shared a presentation with an executive team at a large public SaaS company on everything I’ve learned about pricing. Why do we set prices? Setting aside the important reasons of generating revenue and maintaining solvency for a business, there are many other reasons to set price. Price reinforces brand because price telegraphs whether a product is a premium product or a value product. There are four components to pricing: 1.

From Product-Market Fit to Product-Market-Price Fit

OpenView Labs

Unfortunately, all of the focus on product-market fit glosses over a concept that’s equally as important to a startup’s success: pricing. Product-market-price fit. I propose we reframe product-market fit to product-market-price fit. Finding the right pricing model.

IBM 'cloudifies' mainframe software pricing, adds hybrid, private cloud services

IT World

First of all, the company switched-up its 20-year mainframe software pricing scheme to make it more palatable to hybrid and multicloud users who might be thinking of moving workloads off the mainframe and into the cloud.

Customer-Driven Pricing with Logikcull’s CEO [Podcast]

OpenView Labs

The post Customer-Driven Pricing with Logikcull’s CEO [Podcast] appeared first on OpenView Labs. Andy Wilson is the Founder & CEO of Logikcull, a legal tech startup that’s revolutionizing how lawyers handle document discovery. In this episode, Andy explains why they pivoted from an annual subscription model to pay as you go and the implications this had on the business as a whole (spoiler: it changed everything).

SaaS Pricing Experts Explain How To Turn Pricing Into Your Biggest Growth Lever In 2018


The post SaaS Pricing Experts Explain How To Turn Pricing Into Your Biggest Growth Lever In 2018 appeared first on Chargify Blog. Entrepreneurship Pricing SaaS

SaaS Pricing: The two sides of Freemium

Chart Mogul

Hint: If you want to see examples of B2B SaaS pricing pages, check out our analysis: 5 key learnings from analyzing top B2B SaaS pricing pages. And you need a pricing structure that suits your product. Related posts: What to do when your SaaS pricing is WRONG!

5 Common SaaS Pricing Mistakes (and How to Avoid Them)


SaaS pricing isn’t easy. In a constantly changing environment, getting your pricing right can feel like you’re trying to hit a moving target. Today I’m identifying five of the most common SaaS pricing mistakes to avoid

How Per User Pricing Damages SaaS Revenue Generation


One of the most common value metrics we see in SaaS is the ‘per user’ pricing model. While it is easy to understand and simple to measure, it’s rarely the most appropriate pricing model for your customers

Chocolate bars taught me how to price my freelance services

The Marketing & Growth Hacking Publication

They have the advantage of price. So how does this story about chocolate relate to freelance pricing and personal branding? People who buy Whitaker’s buy it because they want quality at a reasonable price. pricing business marketing freelancing mark-growth

Insightful Study of 386 SaaS Startup Pricing Pages


As it turned out, 80% of the 250 biggest SaaS companies didn’t have a pricing page at all. Of the remaining 386 which hadn’t shut down, I found that startups are around twice as likely to show their pricing than their enterprise SaaS big brothers. 84% organize prices low to high.

What Your Minimum Advertised Price (MAP) Policy Can’t Do


So, you’ve drafted and published a minimum advertised price (MAP) policy. MAP Protection MAP Monitoring MAP Price map policyThat’s great news. Your company just took an important step toward protecting your resale channel and your brand’s reputation.

B2B SaaS pricing pages in 2017: Lessons from 100+ top businesses

Chart Mogul

We analyzed over 100 B2B SaaS Pricing pages to look at the trends, standards and innovation in one of the most important parts of any SaaS website. Why SaaS Pricing pages are fascinating. Pricing pages are a rare window into a SaaS business’s strategy. Part 3: Pricing tiers.

Amazon Just Ended its 'Price Parity' Rule. Is This Good News for Brands?


On March 11, 2019, Amazon confirmed it has ended a longstanding policy that forbids sellers on its marketplace in the US from offering the same products for lower prices on other sites. Amazon didn’t comment on why it removed this rule, which has become known as its “price parity” policy.

Should You Raise Prices When Your Costs Go Up?

OpenView Labs

The knee jerk reaction to an increase in costs is often a price increase. Some years ago, I was sitting in the office of the VP of Pricing at a major manufacturing company. He suggested lowering the cost of equipment and increasing the prices of software services.

3 Nice Surprises When You Set Up the Right Price Monitoring System


If you’re considering implementing an automated price monitoring system for your products, first of all, congratulations. price monitoring Price Tracking Software

Product, Pricing, Marketing, and Data: Essential Building Blocks for SaaS Success

OpenView Labs

Building Your Foundation: Product Market Fit and Pricing. Pricing – Finding the Sweet Spot. Not unlike the iterative development process of the product itself, coming up with your pricing involves a lot of experimentation.

The Price is Right (or not)

The Angel VC

One of the most important questions which every SaaS company has to solve is to find the right pricing – the right pricing model as well as the right price levels. It’s obvious that getting pricing right is extremely important: If you’re too cheap you will leave money on the table and reduce your ability to invest in customer acquisition. It is of course impossible to find the optimal price point in a way academic textbooks would define it.

3 MAP Pricing Policy Mistakes You Don’t Want to Make


It’s unfortunate, but we at TrackStreet still see manufacturers and brands making these MAP pricing policy mistakes all the time. MAP Pricing MAP ProtectionLet’s make sure you know to avoid them when drafting and enforcing your MAP policy.

The Price Anchoring Effect of Distribution Platforms

Tom Tunguz

When building a SaaS product for salespeople, a startup’s price will inevitably be compared to Salesforce CRM’s cost of about $150 per seat. In diligence calls, I often hear buyers say: one-half of Salesforce’s price seems expensive; one-third might seem more reasonable. This is the price anchoring effect in the real world. Relative pricing comparisons are among the most common method of price rationalization.

How repositioning a product allows you to 8x its price

A Smart Bear

Pricing is often more about positioning and perceived value than it is about cost-analysis and unconvincing ROI calculators. As a result, repositioning can allow you to charge many times more than you think. Here’s how.

Reseller Pricing Program: Are You Undermining It with Any of These Mistakes?


That reseller pricing program you’ve drafted and are now trying to enforce? You can’t build a strong brand in the marketplace, after all, if your retail partners are free to advertise your products for discount-bin prices or treat them as loss leaders to lure customers to their stores.

There are Only 3 Pricing Strategies for Your Startup

Tom Tunguz

Pricing. 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. If everyone else prices per seat, then so should we… Is this the right thought process? Madhavan Ramanujam is a pricing expert.

5 Key Psychological Biases That You Can Leverage to Drive Sales


Highlighting one pricing tier as the most popular. Ecommerce sites often use the bandwagon effect by showing shoppers what other people have bought: We’ve seen the bandwagon effect work wonders for account executives using SalesRight to highlight one pricing tier over another.

Sales 278

Subscription price and customer acquisition costs

Practical Advice on SaaS marketing

Here's an inquiry from the SaaS Marketing mailbox: Dear SaaS Marketing guy, Do software-as-a- service (SaaS) solutions with a high subscription price per customer have a better chance of success than solutions with a low subscription price?

How ChartMogul helps Sellbrite optimize their SaaS pricing

Chart Mogul

Find out how they tackle optimizing their SaaS pricing for customers -- from tiny online stores to high-volume multi-channel sellers. The perpetual pricing dilemma. By what metric should my pricing scale? Price-value alignment is hard.

Lola’s Mike Volpe on Pricing to Win in Competitive Markets [Podcast]

OpenView Labs

In this episode, he explains the relationship between pricing and brand, his perception of freemium and the importance of looking closely at your happiest customers for growth opportunities. ?. The post Lola’s Mike Volpe on Pricing to Win in Competitive Markets [Podcast] appeared first on OpenView Labs. Mike Volpe is no stranger to competitive markets.