SaaS Pricing Archives - Pricing Articles from Professional Pricing Society

What to Price? Products, Use Cases, Value Paths

Most SaaS companies price products. This seems like the obvious thing to do since they do, in fact, sell products. However, is this always the best approach? In this article, the author highlights the benefits of alternative pricing approaches, such as pricing “use cases” and “value paths,” basing pricing strategy more on what “leads a buyer to buy or a user to use.” Although this article focuses on SaaS companies, these considerations apply to pricers in multiple markets and organizational structures.

By admin|2024-04-16T18:58:56+00:00March 31, 2024|Pricing Articles, Pricing Models, Pricing Strategy, SaaS Pricing|0 Comments

SaaS Discounting Practices and Pricing

Many companies say that a discount is an investment, but they don’t really treat it that way. There is no analysis of the scale of the investment and the expected return, and when there is, there is seldom any follow-up to see if the return on the discount was realized. In this article, the author outlines several common types of discounting as well as common pitfalls of these approaches and best practices for implementation. Although the examples are B2B and Software-as-a-Service (SaaS) specific, the pricing insights in this article are applicable for pricers across industries.

By admin|2023-10-31T16:41:22+00:00October 31, 2023|Pricing Articles, SaaS Pricing|0 Comments

Profit Starts with Packaging and Pricing

It is time to shift from “growth at all cost” to “sustainable profitable growth,” or as we like to call it: “better growth.” To fight increasing sales cycles, lower win rates and decreasing NRR, packaging and pricing should be the first point on the agenda of your next board meeting, as the authors explain.

By admin|2023-08-29T14:05:20+00:00August 31, 2023|Pricing and Marketing, Pricing Articles, SaaS Pricing|0 Comments

Streaming Services Continue to Battle

Streaming services have begun coming around to the revelation that they cannot spend endless piles of cash on content creation indefinitely. They have to innovate to grow their subscriber base. Some innovations – such as alternative pricing models - have been successfully launched, some are still in progress, and some companies are having to change their game plans, leadership, or sometimes even both, as the author explains.

By admin|2023-06-16T15:36:10+00:00May 31, 2023|Pricing Articles, SaaS Pricing|0 Comments

Is it time for SaaS companies to factor costs into pricing?

There has long been an assumption that Software as a Service (SaaS) companies will become profitable as they scale, so that as long as you are on track for rapid growth, the profits will come. This belief is now being called into question. SaaS companies have real costs and how those costs change with scale has become an open question for many companies. To be successful in today’s changing economic climate, SaaS companies need to understand the relationship between value, price, and costs and how these change with scale, as the author explains.

By admin|2023-03-29T14:04:23+00:00March 31, 2023|Pricing Articles, SaaS Pricing|0 Comments

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This site provides access to archived articles from the Pricing Advisor newsletter, the Journal of Professional Pricing, our pricing blog, pricing research reports, and other resources for pricing professionals.