Roundtrip Revenue & Buying Your Customers’ Products: Probably, Just Do It

SaaStr

If you’ve been around since the earlier days of the internet , a certain phrase may send shivers up your spine — “Roundtrip Revenue.” ” People went to jail at AOL for this , overstating revenue by as much as $1 billion that wasn’t really real.

A SaaS pricing guide: SaaS pricing models, strategies, & examples

ProfitWell

Every SaaS company might be different—but almost every single one makes the same mistake that puts the company in jeopardy: it doesn't understand its pricing. If your SaaS company doesn’t have a pricing strategy in place, you’re leaving huge revenues on the table. Yes, nailing your pricing strategy is crucial to SaaS success—but it doesn’t have to be that difficult. How is SaaS pricing different? Why it’s important to nail your SaaS pricing.

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How To Drive Up Your Average Deal Size. And Remember — Almost All Pricing is Relative.

SaaStr

You could spend days reading about pricing and pricing strategies in software on the web, but a lot of this content doesn’t really hit one, basic fundamental point — there is no real reason any particular piece of software should cost anything in particular. Twilio and Talkdesk and other voice products, for example, have real telephony costs (although as a % of revenue, they vary widely). Pricing in software is really in large part relative to what.

What is revenue optimization? Using pricing to optimize revenue

ProfitWell

Revenue is good. Lots of revenue is great. Optimized revenue is better. Because the world of e-commerce is so restless, as soon as your company finds itself bringing in steady revenue, the first question anyone will be asking is: How can we make this performance even better ? The better answer, in fact, is to optimize the revenue you’re already bringing in. Revenue optimization, though, is not as simple as flipping a switch. What is revenue optimization?

How to Package and Price Embedded Analytics

HOW TO PACKAGE & PRICE EMBEDDED ANALYTICS. Practical Frameworks to Monetize Embedded Analytics Table of Contents Embedding Analytics to Lift Value and Revenue. 15 Pricing for Value Organizing Your Tiers. Competitive Pricing. value, priced accordingly.

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. The most common pricing formulas are: Fixed fee Flat rate Volume Stairstep Tiered Fixed fee Fixed fee pricing is probably the pricing […].

When You Raise Prices More Than a Smidge … They At Least Look At Another Vendor

SaaStr

We’ve talked quite a bit about the pros and many cons of raising prices on existing customers on SaaStr. Our general view, and experience, is that until you are fairly mature, raising prices on existing customer isn’t worth it. Raising prices on a small group of customers today won’t move the long-term needle. What I think is even more important is how material price increases make your customers … look.

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

SaaStr

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. He told me he had taken a big risk on us, and just getting an invoice out of the blue with a 600% price increase “was just not OK” He was right. I canceled the price increase. via a price increase won’t matter.

3 Steps to perform a pricing audit and maximize profitability

ProfitWell

Your core is a lot like pricing in SaaS companies. Like your core, pricing is a wildly untapped growth lever. Building a strong pricing strategy starts with hiring a professional team to conduct a pricing audit. What is a pricing audit? A pricing audit assesses your subscription business’ pricing process to ensure consistency across similar accounts, maximize profitability, and benchmark against other companies. The main factors in a pricing audit.

The Monthly Recurring Revenue Guide for 2021

Chart Mogul

Monthly recurring revenue is one of the least exciting topics to take on in 2020. MRR stands for Monthly recurring revenue. It measures the total repeatable revenue your company generates each month. Add up all the revenue that customers pay on a monthly/subscription basis.

Best Practices for a Marketing Database Cleanse

As frustrating as contact and account data management can be, this is still your database – a massive asset to your organization, even if it is rife with holes and inaccurate information. Entrusting a vendor to help maintain its accuracy and completeness is no ordinary engagement. Download ZoomInfo’s latest data-driven eBook aimed to help marketing leaders understand the best practices around choosing a B2B contact data provider.

What do you think makes a good SaaS pricing page?

SaaStr

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. Familiarity in your pricing schema is key to maximizing sales velocities with less well-known vendors. Innovation is great … just often not on pricing. There should be pricing protection for renewals and later years.

Revenue Growth: Understanding & Calculating Revenue Growth

ProfitWell

Revenue growth might well be the king of all SaaS metric monsters, the Godzilla of the balance sheet. And what works for the beast from the deep works for revenue growth: to master it, you must first understand it. Though you can calculate revenue growth with a simple formula, found below, that’s only half the battle. What is revenue growth? Revenue growth is the increase, or decrease, in a company’s sales between two periods. The revenue growth formula.

Matching Price to Value: 3 Lessons in Monetization from Menlo Ventures (Video + Transcript)

SaaStr

We’re going to talk about matching price to value, and I’m going to share some lessons from my time as both an operator and an investor. This is an interesting study that was done by the folks from Price Intelligently. This means net of churn in downgrades, your existing customer base that sticks around is actually paying you more over time on the order of 130% revenue retention. The next camp, we price it artificially low. We increased the price 33%.

When and how should SaaS startups offer reduced pricing?

SaaStr

For most SaaS apps, you want to at least start with “just right”, Goldilocks pricing: Too high a price, and you start to add friction to the sales process. So too high a price will dramatically increase friction, likely not enough to be worth the additional revenue per deal. Too low a price also adds friction to sales, and if significant, leaves too much money on the table. The answer is simple: mark-up your pricing equal to the average discount.

5 Early Indicators Your Embedded Analytics Will Fail

Indicator #5: Revenue Impact. to languish until something—an unhappy customer, plummeting revenue, a spike in customer churn— demands change. revenue yet, it’s easy to push enhancements off. average sales price or increased customer churn—and.

How to Optimize Your SaaS Pricing Page? (Best Practices + Examples)

Incredo

Psychological facts about your consumers + advanced pricing page tips + real SaaS examples = your SaaS pricing page is ready to close! . Let’s assume your SaaS pricing page is the final food you want to prepare and you have to use the right ingredients in the right way. Design, pricing strategy, the order of pricing plans and other elements are your ingredients. So keep reading to discover how you can prepare the most “appetizing” SaaS pricing page.

Pricing analysts 101: What does a pricing analyst do? [+ qualifications]

ProfitWell

Your pricing. To make your secret weapon even stronger, you’ll need a pricing analyst backing you up. Pricing analysts collaborate with organizations that employ some form of a recurring revenue model to test various hypotheses about the efficacy of existing and proposed business models, pricing and packaging structure, and general market behavior. What does a pricing analyst do? Inform on optimal price points for different packages and services.

Become a Revenue Architect (and Level Up) With a Revenue Engine Framework

Sales Hacker

Revenue Operations is at the forefront of a paradigm shift — to view the buyer’s journey as a seamless thread across multiple people, systems, and value propositions. Newly minted Chief Revenue Officers are what I like to call revenue architects.

Scaled pricing: comparing tiered and volume pricing scales

ProfitWell

It’s time to throw the age-old theory of “one product, one price” out the window. Sure, a single package at a fixed price might attract customers and spur growth and keep things simple in the early days of your company. But, ultimately, failing to get scaled pricing right is a death knell for SaaS products. Every customer has different needs and is willing to pay a different amount—and your pricing needs to accommodate all of them. What is scaled pricing?

New Study: 2018 State of Embedded Analytics Report

Customer success, not field sales, drove the most revenue. In turn, this drives user satisfaction, application stickiness, and revenue. user experiences, stickier applications, and (especially crucial for ISVs) higher revenue. helped them increase overall revenue.

Direct-to-consumer pricing: finding the perfect DTC price point

ProfitWell

This brings increased revenue and decreased overhead to businesses who adopt the strategy. While selling direct to consumers allows businesses to keep more profit, it requires a different pricing strategy than a traditional wholesale/retailer relationship. Common DTC pricing methods.

Price bundling: Can bundle pricing boost sales? | ProfitWell

ProfitWell

That’s price bundling. That’s the great thing about a bundle pricing strategy—not only do customers experience the benefits of a suite of products for a single purchase price, but the company also displays more value. In today’s article, we’re going to talk through what price bundling is and how it can help your business, and we’ll provide a few examples of it in practice. What is price bundling? Common examples of price bundling. pricing

What is optional product pricing? Definition, examples & our take

ProfitWell

Finding the best pricing model for your product means knowing which pricing strategies are out there so you know which one fits your product and business needs the best. Optional product pricing isn't the right choice for everything and can quickly go wrong if it's matched to the wrong product. In this post, we'll take a look at what optional pricing is and examine some of the popular items that use it. What is optional product pricing?

Tiered Pricing Model Explained (In Plain English)

Baremetrics

Perhaps this is why tiered pricing is so popular for SaaS companies. Stuck on picking a pricing model for your product? Tiered pricing is probably your safest bet. Table of contents: What is tiered pricing? What is tiered pricing?

SaaS Pricing Models & Strategies Demystified

Baremetrics

Pricing can be one of the most overwhelming and puzzling parts of business. SaaS businesses, in particular, have a unique challenge with pricing for a few reasons: There’s an almost infinite number of different ways to price a SaaS product. The cost to produce and maintain a SaaS product is generally unrelated to the value a customer receives, so pricing based on how much margin (profit) doesn’t make sense for the most part. What is pricing? Change the price.

Revenue Churn: How to Calculate, Track & Improve

Baremetrics

Revenue churn answers the question: how much MRR did we lose last month? The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible. What’s negative revenue churn? What is a good revenue churn rate?

Churn 63

Complete Guide to Market-Based Pricing

ProfitWell

Whether your organization is a seasoned veteran or at a very early stage, your pricing strategy is one of the most difficult, yet incredibly important things you need to have in place before entering the market space. How you price your offerings will obviously affect your bottom line and revenue, but it will also have an effect on your potential customer’s perception. What is market-based pricing? Product life cycle can also determine market-based pricing.

How Per User Pricing Damages SaaS Revenue Generation

Cobloom

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

The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CEO Aaron Ross (Video + Transcript)

SaaStr

Now, how many people here have read Predictable Revenue? First, you get product market fit, then you create predictable revenue, and then you scale. So, one of the interesting facts is, they did this analysis and they said, “Okay, when we make an investment, we can … without looking at M&A or process changes or pricing or sales growth, what they identified was 70% of the increase in valuation of their companies came from increasing organic sales growth.

Per User Pricing: The Good, The Bad & The Ugly

Baremetrics

Pricing is one of the most heavily debated topics in the SaaS world. Not just how much to charge, but what pricing model to go with. In the early days of selling software (and transitioning into SaaS), per user pricing was pretty standard. What is per user pricing?

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

SaaStr

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? Mark Suster , General Partner @ Upfront Ventures: What were Mark’s two biggest lessons on pricing from seeing the hyper-growth of Salesforce first hand? I learned a ton about pricing.

Premium pricing examples, definition, and expert insight

ProfitWell

The SaaS field is intensely competitive, and like everyone else, you’re looking for a sales strategy that will help your product bring in more revenue than your competitors. One simple way of doing this is to just charge more for your product—also known as premium pricing. In a field stacked with competitors, a brilliant product priced at a premium can give your current and prospective customers a favorable impression of your business’ commitment to quality. premium pricing

What’s an effective price? Price effective strategies & subscriptions

ProfitWell

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? If the answer is no, then there is potential for revenue-related issues as your company matures. Finding an effective price helps you solidify your position, build trust with your customers, and achieve your business goals. What is an effective price? pricing

Value-based pricing: the modern way to price products | ProfitWell

ProfitWell

Every business that sells some type of product or service has a pricing method. Pricing methods are ways of calculating the price of goods and services by taking into account all the factors that can influence pricing strategy. There are four popular pricing methods: cost-plus pricing, competitor-based pricing, demand-based pricing and value-based pricing. What is value-based pricing? Why ProfitWell loves value-based pricing.

Pricing Page Guide: What the Best 5 Pricing Pages Get Right [2019]

ProfitWell

“Close enough” is sufficient only in horseshoes and hand grenades; your pricing page is no exception. If your pricing page isn't perfectly designed to convert potential customers, all that effort you put into sales, marketing, and product development might as well be for naught. Unfortunately, all too many early-stage startups fall into the trap of pouring everything they have into their product and only hastily slap together their pricing page as an afterthought.

Your current pricing strategy seems a bit.bananas.

ProfitWell

Today on Recur Now, we’re taking the value metric one step further by talking about the best pricing strategy for SaaS: value-based pricing. Listen wherever you get podcasts: Bananas for value-based pricing. What does value-based pricing entail? Pricing is a process.

Pricing Methods: Understanding the Top 6 Pricing Methodologies

ProfitWell

For a young company, choosing a pricing method and establishing your overall pricing strategy can be daunting - it's the moment where you find out how much people actually value your beloved idea and how much they're willing to pay for it. That’s why it pays to get your pricing methods right. The choices you make with pricing methods and setting the right pricing are essential to determining the growth of your subscription business. What are pricing methods?

What are Pricing Analytics? Using Pricing Analytics to Increase Profits

ProfitWell

They’re confident in their pricing strategy since they know it’s rooted in real data. Those two crucial bits of information might seem simple on the surface, but they drive the vast majority of pricing mistakes companies make. Guessing and speculating about their customers’ motivations, needs, values, and willingness to pay means companies are missing out on real opportunities to increase revenue, reduce acquisition costs, and fight churn. What are pricing analytics?

What is the subscription revenue model? | ProfitWell

ProfitWell

The subscription revenue model is hardly new. It’s simple: the subscription revenue model benefits both customers and companies. Meanwhile, companies offering subscriptions can scale with confidence, with predictable revenue and deeper relationships with their customer base. But before you do, let’s take a look at some of the basics of the subscription revenue model and why it works across such a wide range of businesses. What is the subscription revenue model?