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SaaS Pricing

Public • 512 • Free

7 contributions to SaaS Pricing
Why Pricing Ops as a Function is inexistent? Any examples of companies with PriceOps?
One of the most puzzling questions I have as a management consultant on Strategy & Margin is the lack of PriceOps. We know research shows that companies that evaluate, adjust and change pricing often, grow several folds faster. We start to see RevenueOps adopted in some organizations (I created RevOps Transformations at PwC), but PricingOps is a very important part of RevOps. I think Pricing should be considered a core function of a business, and not a standalone project done when... well, we are running out of money or we are raising a new round. Any thoughts on this?
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New comment Oct 11
1 like • Aug 30
@Martin Gallardo Yeah, I agree with you there. I seldom meet Pricing Professionals besides in large companies, but I know exceptions. I believe that in "smaller companies" the leverage on Pricing compared to a full time equivalent Pricing Manager is smaller. I do have some real life KPIs of Pricing FTE/Billions in Revenue from earlier this years (from large top companies). Might find that later. Regardless size of company, I still claim that Pricing is (should be) Top Management Top Comittment 🫡
0 likes • Oct 11
Another Observation: Corporate Pricing Functions (vs. Pricing Consultants) While Pricing Professionals within corporate pricing functions spend their days working with value propositions and quantifying customer value (in addition to managing price lists), they often seem, compared to consultants, to be: - Less focused on articulating the value proposition of the pricing function or initiative itself. - Not sufficiently quantifying the financial impact delivered by their pricing efforts. JJ
Intellectual Property ownership for SaaS Startups?
Hi Everyone I wonder if you have experiences or opinions about the importance (or not) of having copyrights or patents (or alike) finding funding for a B2B SaaS startup. I understand it is "better", but is it a necessity? Or.... it depends. My case is scaling something that is working. The application enables pricing/selling more value based in traditional industries, extremely fast, tested/used in Field Service. Scaling means getting people on-board (further development, marketing/sales), and financing. If very valid, any sources where I can learn more about Intellectual Property? Should this be one of my top priorities? Is there any other alternatives? With a Smile, JJ
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New comment Oct 7
1 like • Oct 6
@Christine Carragee Thanks a lot for your input, appreciate it. With limited knowledge myself, I kind of "hoped" for your answer. Especially since I believe the software itself is not advanced, neither are the ideas (value based, right?), but the ideas put in practice together with a an application (and some consulting setting it up + "change management") makes the magic. I might reach out later again, JJ
0 likes • Oct 7
@Michał Narkiewicz Thank you very much! Really appreciate you sharing this. Saves me a lot of worries and time, better used elsewere.
Terms & Conditions Webinar: Post - Q&A
Hi Everyone Thank you for a great webinar experience - I thin we had 50 people tuning in to hear about B2B SaaS terms and conditions, which is pretty crazy (considering how niche that topic is). The Q&A questions I didn't get around to are here below (I'll answer them later today, but have to run into a client meeting now): I am really grateful for all the positive feedback from these webinars - and if you have any feedback on how to make them even better, do let me know! /Ulrik -------------- Javier Let's say you've accumulated some commercial debt like legacy discounts and pricing to some early customers, who may have contractual perpetual discounts or fixed pricing. What are some approaches to clean that up? Steven What does it mean practically to "allow customers to leave whenever they want to leave"? Is an example of that a term that says they can leave with 30 day notice? If so, that sounds like customers might leave mid contract term and could trigger a refund to the customer. Thomas If you have unilateral price changes in all contracts. Do you still notify customers upfront that the prices is changing? Ida Some customers get upset when the prices go up and will because of that turn to competitors where the price is lower. What are your tips to do a win-back in this situation?
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New comment Sep 19
2 likes • Sep 19
Great webinar, on a topic valid for any business. One of my first first pricing projects (large company doing projects, subscribed service and maintenence + additional services) a long time ago had to do "cleaning up" in "ways to charge (structure)" before being able to move on to "prices". Then, taking on a turn-around for a geographical entity in the same company I inherited the vast number of different "subscription" contracts, with different structures, indexes, periods, prices etc etc. First, we streamlined structures and prices for additional services on all contracts, exept for the very large profitable customers, very profitable customers & new agreements. We were lucky (would have done it slightly differently today), no one showed any concerns, no churn because of that. I stayed with that unit for 4 years. We reduced invoicing costs (FTE) by >75%, reduced average time from assignment to invoice with months. Secondly, as you described, there was a long time ("two years") finding out what we really delivered in the subscription agreements, re-calculate and negotiate a new standardized agreement, with a valid subscription price. Hard work, but seldom hard to convince the customers. I know many companies besides B2B SaaS that could use the structured approach to reduce Commercial Debt you deliver.
Pricing Governance
Hey Ulrik I really liked your session today and how you get all your stakeholders to agree on pricing within a single workshop. My biggest question is how to ensure ongoing collaboration later. In my experience it's very difficult to keep stakeholders aligned on pricing objectives, given their different interests. Have you come across any solution that is less formal than a regular pricing alignment meeting? From which point on would you recommend dedicated pricing/revenue growth professionals?
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New comment Sep 1
0 likes • Aug 31
@Ron Kugler I think Ulrik cleared out most of it below. The Committee we describe seems alike, also the need for Pricing Professionals. Many of the organisations I have been involved in made PnL responsible managers part of the Committee, always outnumbering any participants from "Sales" or "Product". In the Committee I ran myself (being the pricing professional, not as a consultant) I had the joy of also involving a great "IT-specialist" (securing both functionality, new improvements and updates of prices etc). If there is the opportunity to have the ones responsible for profit and loss in the Committee, that takes care of conflicts of interest between stakeholders as corporate functions (as Pricing) and Sales (often reporting to someone responsible for profit, right?). Both to simplify, and maybe to make it somewhat more complex. I have never worked in a company (well, never worked in an all B2B Saas Company...) that consider itself only working with one offering to one segment. In the companies I have experience from, there are always different "best ways" to Price, in different, call it situations - that made different pricing strategies, different processes, and different governance models needed. One simple example from one company: - Large multiyear deals were always very competetive, and pretty transparent, with long tenders => Cost & Competitor Based Pricing. Corporate Sales kind of owned this - Smaller deals and additional sales to current customers, less competition, urgent needs => More value based pricing, guided by "the price list", developed by the above mentioned Committee Different situations, offerings, business' might be best managed with different governance and models even within the same company.
0 likes • Aug 31
@Ulrik Lehrskov-Schmidt not a cop out, I think. I think that activating top level management in Pricing is essential. Being enthusiastic is not enough. Two small formal activities for top Management in the above case: 1. Appoint members to the Committee 2. Decide/signoff of the proposals (at least annually, not talking dynamic pricing, but the decision to work with dynamic pricing would be such a top management decision), but taking visible and formal accountability of Pricing Again, what you share here , and makes many more share is really excellent, thanks a lot!
Disclosing Discounts
I would love to hear any thoughts about documenting discounts. Is there ever a reason to not show the provided discounts in your resulting contract with your client? Can it lead to downstream issues?
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New comment Aug 27
0 likes • Aug 24
Two totally different scenarios (both in favour of disclosing discounts) I know work very well - in certain cultures/industries/scenarios: 1) Anchor your price ("list price") with high estimated value ("price $100"), hustle what you need, discount, preferably with a valid argument (see 2). Send all invoices with agreed discount disclosed. Transparent, easy. If everything in the agreement is good, the discount transfers to next year. 2) Understand that "value goes both ways". Estimate what different kind of value different clients and their actions brings To You. Discount, from your "global list price" according to the value your client provides to you. This (hopefully) ends upp with a transparent discounting. I know a global manufacturing company who annually invites all their customers in the same region and publicly (in principle) presents all list prices, discounts and net prices for the clients. "I want the same discounts as my competitor" "We'd be happy to give you that, just do what they do: establish your own first line service center (makes you a discount of 3%), make your orders with minimum bulk of 10 000 pcs (0,5%)". In essence the conference is about to "help your clients provide more value for you (and them) and reward them with discounts". Hope this was at least a fun story, much depending on the culture in the industry
0 likes • Aug 26
@Christine Carragee Love this! In "my industries", Public Sector is often a large segment - with thick agreements stating what could be invoiced or not (due to historical mispractices). Not seldom stating that "stuff that really is needed for providing the service on a running bill cannot be invoiced" (sometimes consumables, service car etc). I always argue: - Always do the same on any contract, if you use the car, punch that button - If the car cannot be invoiced, set the price to "0" (or better, 100% discount on the listprice for the car). Good to see you here Christine!
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Jerker Johansson
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9points to level up
@jerker-johansson-4069
Building/scaling Field Service B2B Saas Pricing Tool, "hustling phase". Pricing since 2007, ex Pricing Mgr. Consultant Pricing within Field Service

Active 10d ago
Joined Aug 21, 2024
Stockholm/Sweden
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