SaaS pricing

Article archives from the Pricing 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.

Train Your Pricing Muscle

In the current economic climate with increased cost of capital and sustained high inflation across global markets, it’s important for your organization to have an effective annual price increase process in place. As we enter the new year, now is the time to start thinking about your next annual price increase, as the authors explain.

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

Generative AI, SaaS innovation, Value, and Pricing

Generative Artificial Intelligence (AI) is attracting a lot of interest as an innovation platform. How will generative AI be used to create value? How will that value be priced? Artificial Intelligence (AI) will rewrite the software business as we know it, including how we understand value and use it to price. The model driven approach to pricing will accelerate rapidly, fed by AI generated models, as the author explains.

By |2023-06-16T15:29:00+00:00May 31, 2023|Pricing and AI, Pricing Articles|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 |2023-03-29T14:04:23+00:00March 31, 2023|Pricing Articles, SaaS Pricing|0 Comments

Inflation in the Subscription Economy

In the world of subscriptions, customers typically pay a fixed amount in regular intervals after having made a purchase decision on a pricing page from a set of available plans, usually differentiated by feature or time commitment. With a dollar in the future not being the same as a dollar today due to record rising inflation, the $20/month you charge customers will be worth less and less in real terms over time. While rising inflation is a legitimate concern for SaaS companies, its effects can be mitigated by planning ahead and adapting prices the right way.

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