In a recent episode of dojo.live, I teamed up with America Guerrero and Kimberly Lantis, plunging headfirst into the robust world of B2B SaaS pricing. Our discussion was a deep dive into the challenges and strategies vital for entrepreneurs aiming to accurately value their offerings in this competitive field.
Key topics we covered in this episode:
- Significance of considering segments, value, and competition as inputs to the pricing process.
- Need to analyze segments simultaneously to develop effective pricing strategies.
- Integrating pricing discussions earlier in the product development process to avoid misaligned pricing.
- Common misconceptions in SaaS pricing
Timestamped Outline
04:54 Understanding customers is primary; price is secondary.
09:35 Pricing and packaging should be considered early.
16:00 Pricing’s impact on the business’s strategy.
22:52 Simplify pricing with bundles.
26:27 Monitor competitors, reassess pricing, and setup a pricing committee.
Potent Quotables
The Importance of a Pricing Leader:
“I think it’s incumbent on CEOs to think seriously and earlier than they maybe feel comfortable with to appoint someone as the pricing leader in your business. Now, who should that be? My general recommendation is product marketing should own pricing.”
— Dan Balcauski
Revisiting Pricing Strategies:
“Your differentiated value is changing. As the market changes, both your product and your competitors, it makes sense to revisit your pricing to make sure that’s still online.”
— Dan Balcauski
Pricing Strategies:
“Talk to your buyers, and I think in the product management world too often that can be myopic, and we only think about talking to our end users.”
— Dan Balcauski