SaaStr

MARCH 23, 2024

Are we thought the endless price increases we saw in 2023? A stunning 76% of you are raising prices in 2024. Personally, I’m a fan of only raising prices if you’ve earned it, and focusing on raising prices on new customers, not just the base. Apparently not. That’s up from 54% in 2023.

Pricing 299

Pricing SaaS 299

Blulogix

OCTOBER 22, 2024

By BluLogix Team Complex Pricing Models: How BluLogix Simplifies UCaaS Monetization Summary: Managing complex pricing models is a major pain point for UCaaS companies. From seat-based pricing to consumption-based and hybrid models, keeping track of various offerings and ensuring transparency for customers can be challenging.

Pricing 110

Pricing B2B Subscription Payment Features 110

SaaStr

OCTOBER 25, 2024

8: 3x Net Dollar Retention Thanks to This Pricing Model Over time, the dominant pricing structure in B2C and B2B applications is like the cell phone plan. You get a base number of minutes for a particular price. But now there’s been a broad shift toward usage-based pricing or seat-based pricing, or a combination of the two.

Venture Capital 333

Venture Capital Marketing AI SaaS 333

Sales Hacker

FEBRUARY 7, 2025

SaaS pricing isn’t static – it’s a living strategy that grows with your company. In this article we dive into a playbook for pricing across different stages of company growth, inspired by Geoffrey Moore’s Crossing the Chasm. Tiered pricing models emerge to address these differences.

Pricing 110

Pricing Scale SaaS Technical Review 110

Tom Tunguz

JULY 10, 2024

Pricing an AI product will be a defining question in software for the next few years. We can observe the market trends today across some of the larger SaaS companies who offer AI pricing. Company Product Base Price AI Price Ratio Github Github Enterprise 21 10 0.67 AI products offer productivity gains.

AI 276

AI Pricing Sales Hiring Strategy 276

SaaStr

FEBRUARY 3, 2025

There have been so many price increases since 2021, many apps are 40% or more expensive than they were in 2021. To raise prices even more? DeepSeek has, at least in theory, cut the price of AI for SaaS as much as 90% overnight. And in Classic B2B you are raising my prices this quarter again ? But will it hold?

AWS 297

AWS AI Software Business 297

SaaStr

DECEMBER 25, 2023

Dear SaaStr: Should SaaS Pricing Be Adjusted for Different Geographical Markets? Your public pricing? Second, your users will see the pricing is “cheaper” somewhere else and get mad. Make the pricing roughly comparable. And you should do this And finally, the biggest “exception” is non-transparent pricing.

Pricing 296

Pricing Marketing SaaS Development 296

SaaStr

MARCH 23, 2024

Dear SaaStr: Why Do Most Entrepreneurs Under Price Their Offerings Initially? Yes, most of us at first under-price and then slowly raise prices as we gain confidence. The post Dear SaaStr: Why Do Most Entrepreneurs Under Price Their Offerings Initially? But maybe not in the beginning. appeared first on SaaStr.

Pricing 287

Pricing Sales Revenue 287

SaaStr

MARCH 14, 2024

Mobile Subscription Pricing is Flat, Not Up This is interesting. I suspect it’s because of the huge friction in mobile of moving beyond organic price points like $9.99 a month to pricing, especially for the existing base. #3. It’s actually even harder over there. So in many ways, they have to be better.

Mobile 322

Mobile Subscription Payment Features Pricing 322

SaaStr

MARCH 13, 2024

Dear SaaStr: How Do I Increase Pricing Again Without Angering Customers? First, plan to increase pricing in general once a year, each year for new customers. So increase pricing annually to reflect that. Try to increase pricing annually for new customers. Don’t increase pricing beyond what you’ve earned.

Pricing 287

Pricing Branding Sales 287

SaaStr

FEBRUARY 3, 2025

The Enterprise Pricing Journey Is All About Unbundling Stripe learned this the hard way. pricing was brilliant for SMBs but completely wrong for enterprise. You have to go all in.” Their famous 2.9% + $0.30 But if you get it right, the rewards are enormous.

Scale 275

Scale SMB Enterprise Enterprise readiness 275

Tom Tunguz

JULY 11, 2024

3x as productive as humans, which would parallel mechanical robots, how does a software company price? Building on yesterday’s post , pricing in software companies may change significantly when AI agents become the norm. This would be a significant increase in price, but the value of the software would be much higher.

AI 240

AI Pricing Software Compensation 240

SaaStr

MARCH 26, 2024

In it, we cover the SaaS community’s most pressing questions about Artificial Intelligence (AI), pricing, efficiency, and funding. Today, folks seem to be launching fewer features, ratcheting prices, and digging into the existing customer base. “If When you’re mature, raising prices by $1 might make sense.

AI 302

AI Pricing Artificial Intelligence Scale 302

SaaStr

MARCH 5, 2024

Dear SaaStr: What’s the #1 Most Important Thing in Pricing A New SaaS Product? Most first-time SaaS CEOs price too low and don’t drive ACVs up quickly enough because they don’t quite yet understand the context of the product. More here: The 3 Types of Day 1 Pricing: Low End of Normal. At least annually.

Pricing 273

Pricing SaaS Software 273

SaaStr

NOVEMBER 6, 2024

Seat Expansion Driving Growth, Along with Cross-Sell of New Products Long live per-seat models and pricing! A Big AI Push, But Being Very Conservative on Consumption Pricing For now, Atlassian is sticking mainly to per-seat pricing. It’s split 50/50 at Atlassian. #5. And a few other interesting leanings: #6. $10k+

Enterprise 293

Enterprise Pricing AI Cloud 293

SaaStr

NOVEMBER 6, 2024

Has Pricing Really Changed? Or are clever pricing models worth the friction? Dave answers: “Unless your business plan is predicated on price model disruption, do what everybody else does.” ” The problem with AI right now is those pricing standards are not yet set. ” So that’s the dynamic.

Headcount 272

Headcount SaaS AI Pricing 272

SaaStr

NOVEMBER 1, 2024

And that includes pricing. One caveat: if your product requires significant onboarding and business process change, monthly pricing sometimes just doesn’t work. Be flexible in the beginning at least. Once you have a brand that customers trust, more will prepay annually.

Payment Features 263

Payment Features SaaS Churn Pricing 263

SaaStr

MARCH 8, 2024

With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products. Why is pricing so tricky?

AI 271

AI Artificial Intelligence Pricing SaaS 271

SaaStr

NOVEMBER 8, 2024

AI SDRs have taken off more quickly than AI AEs (although personally, I suspect more value will be in AI SEs and AEs that can answer my deep product and pricing questions instantly, without games). But what about the more personal sales side? But is it working yet, these AI SDRs?

AI 327

AI B2B Engineering Customer Support 327

SaaStr

MARCH 19, 2024

And only 1/3 of these have an exit for 3x-10x the price of the last round, i.e. enough for anyone to make any money. The post What Are The Odds You Get Acquired Within 5 Years for a Good Price? What’s less clear is how many were acqui-hires or acquisitions for a very small amount. So my educated guess from this data: 1%-1.5%

Pricing 333

Pricing Acquisition Startup Education 333

SaaStr

SEPTEMBER 15, 2024

How to price and package AI SaaS products with Sandhya Hegde at Unusual Ventures Pricing is always a super popular topic and this was a great one from Unusual Ventures on pricing in the AI age. Watch / listen and you will do better in GTM. I guarantee it. #5.

AI 330

AI Pricing Scale Scaling 330

SaaStr

JULY 1, 2024

Generally speaking, there are two paradigms: Buy them out at Common Stock price (which is what they in fact own), based on the lastest option pricing. And they can figure out the price and discount. The post Dear SaaStr: If You Want to Buy Shares from a Founder That Has Left the Company, What Price Do You Use?

Pricing 296

Pricing Investment Leadership Strategy 296

SaaStr

FEBRUARY 25, 2025

Endless price increases on the base. I dont mean they literally lower prices, thats rare. Raising prices with little to show for it doesnt. This might get you more revenue today but doesnt fuel the word-of-mouth engine. This may help you hit the plan but again does not fuel word-of-mouth. Canva is one classic example.

AI 270

AI Scale Social Media Generative AI 270

SaaStr

JANUARY 2, 2025

I was advised to push back and ask for a significantly higher price. I asked for something like $7m-$8m at a significantly higher price. Not a very good today given the early traction we had, but fair enough for the time. I went and asked some folks what to do. Without even thinking about it. The details I sort of forget.

Pricing 276

Pricing Metrics Marketing 276

SaaStr

MARCH 29, 2024

The post Can You Still Get Acquired for a Decent Price if Growth Has Slowed or Even Stopped? But even if you’re out of ideas for now, don’t give up all hope of a potentially decent M&A offer, especially if you are cash-flow neutral and haven’t raised too much (that’s important).

Pricing 296

Pricing Scale Startup Acquisition 296

SaaStr

DECEMBER 11, 2024

Pricing and Monetization The industry hasn’t yet settled on a dominant pricing model for AI capabilities, making this an area of ongoing experimentation.

AI Search 287

AI Search AI Artificial Intelligence B2B 287

SaaStr

NOVEMBER 13, 2024

But SMBs in the middle have become more cost and price-sensitive. #10. SMB Weaker. Klaviyo is seeing strengths in its entrepreneur segment (new companies) and enterprise ($50k+ deals) as noted above. Going More and More Multi-Product is the Key To $2 Billion in ARR As it is for almost all of us. Some earlier, some later.

Scale 304

Scale SMB Scaling Enterprise 304

SaaStr

OCTOBER 30, 2024

A Per Seat Model is Key to Expansion at HubSpot Long live per-seat pricing! Yet, its $36k+ ARR customers are now 28% of its base, up from 15% in 2019. And a few other interesting learnings: #6. It still works, when it works. #7. 3+ Product (Hub) Customers Worth 2.7x

SMB 315

SMB CTO Onboarding Scale 315

SaaStr

DECEMBER 15, 2024

How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk #3. How to Train Your Sales Leaders with Michelle Benfer, ex-CRO Bill and HubSpot The post Top SaaStr Posts and Vids of the Week: GitHub’s CRO, OpenAI on Pricing, A16Z on AI in SaaS, and More! appeared first on SaaStr.

AI 261

AI Sales Hiring Pricing Scale 261

SaaStr

FEBRUARY 3, 2025

Well, first, let’s be clear — it’s tough if your core goal is to get acquired for a big price in most cases. But don’t raise so much that your valuation precludes an acquisition at a tolerable price for certain acquirers. There really aren’t that many good acquisitions done a year.

Strategy 269

Strategy Venture Capital Acquisition Pricing 269