In a recent episode of the B2B SaaS Podcast, I sat down with Upendra Varma to discuss the intricate world of pricing and packaging strategies for B2B SaaS companies. We examined the challenges many CEOs face with pricing, the importance of understanding target customer profiles, and the delicate balance of creating unique value propositions. As we discussed real-world examples, one thing was clear: strategic pricing decisions can profoundly influence a company’s success.
Key topics we covered in this episode:
Reasons for companies seeking pricing and packaging help: inflation, outgrowing customer segments, organic or inorganic product expansion, and the broader context of changing market conditions.
Impact of macroeconomic conditions, specifically the shift from economic tailwinds to headwinds and its influence on customer growth and pricing metrics.
Introduction and breakdown of the SVCS model (Segments, Value, Competition, Strategy).
The significance of understanding competition and the alternatives available to segments for effective positioning.
05:39 Pricing problems often stem from other issues. 07:07 Constraints, segments, competition: keys to pricing. 10:39 Strategic mindset for growth. 16:49 Expected revenue: assessing goals, and adjusting prices. 22:11 Decision analysis for CEOs.
“Many pricing problems turn out to not be pricing problems.’ – The real issue lies in uncovering bad company strategy and unresolved decisions.” — Dan Balcauski Value Drivers and Competitive Alternatives:
“Your pricing power really comes from the differentiated value you create for a particular segment beyond competitive alternatives available.” — Dan Balcauski Multidimensional Nature of Pricing:
“It’d be like trying to describe or paint a sunset if you only had the language of primary colors.” — Dan Balcauski
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