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Pricing Practices for SaaS Marketers // Marketing Technology Podcast

I recently had the privilege to join Elias Crum on the Marketing Technology Podcast, where we took a deep dive into the art of SaaS pricing. We discussed the importance of not overlooking pricing as an integral part of marketing strategy and the complexities of implementing pricing models that drive value for businesses and their customers.

Throughout our conversation, we explored various topics, from the practical implications of pricing studies to the role of transparency and fairness in building customer trust. We challenged common misconceptions in pricing, asserting that success is not solely tied to the price level.

Our conversation underscored the need to evolve toward a more formalized and structured approach to SaaS pricing. We highlighted the importance of clear goal-setting, consistent communication with sales teams, and continually monitoring and adjusting key performance indicators (KPIs).

Key topics we covered in this episode:

  • The underappreciated importance of pricing in SaaS and marketing
  • The SVCS model for SaaS pricing (segments, value, competition, strategy), with practical advice on its implementation.
  • Challenges and misconceptions in pricing
  • Strategies to handle inflation and price increases in the B2B domain, including tips on navigating these changes without negatively impacting customer relationships.
  • The significance of fairness, consistency, and transparency in pricing
  • The future of pricing
  • Tactical advice on how to roll out pricing changes effectively
The Art of Pricing in Marketing

Timestamped Outline

02:17 The lack of Pricing training for marketers
05:08 How the SaaS pricing model addresses customer challenges.
08:30 Difficult pricing strategies, implementation, and value alignment.
12:57 Effective pricing principles.
21:29 Pricing change evaluation, rollout plan, risk mitigation.

Potent Quotables

The Evolution of Pricing:

“If you look at Product Management, 20, 30 years ago it was a bit of the Wild West. And over time, there’s been many books and boot camp courses and other types of training that have been applied to that. to turn it into an actual structured type of role. And I think the same thing is happening to Pricing over time. It’s taking a little bit longer, but it’s on the way.”
— Dan Balcauski
SaaS Pricing Power:

“Your pricing power really comes from the differentiated value you create for a particular segment beyond the competitive alternatives available.”
— Dan Balcauski
Pricing and Packaging Alignment:

“If you think about pricing and packaging, really what we’re doing when we’re taking a really rigorous look at especially packaging is we’re aligning the packaging to the value story. So it makes the entire sales motion more efficient.”
— Dan Balcauski
Fairness in Pricing:

“The cardinal rule of fairness overall is you don’t increase your profit at my expense.”
— Dan Balcauski

Want more B2B SaaS pricing and packaging insights? Follow Dan on LinkedIn and Twitter.