Feedback wanted on "greater of principles" in SaaS towards B2B2B (big ones) --- We are experimenting with some new price models in our ecosystem towards re-sellers, i.e. B2B2 multipliers of our software. The feedback so far is positive. What do you think, is there anything you would consider changing in this price model idea? What don't you like, what could be an alternative to the below? --- Example: Pricing Schedule This Pricing Schedule forms part of the agreement between Supplier and Reseller. The following terms and conditions govern the pricing and payment structure for the services provided by the Supplier. Principle of "Greater Of" For all pricing and payments, the Reseller agrees to pay the Supplier the greater of: - 70% of the final sales price at which the Reseller sells the service (exclusive of VAT and taxes), or - The minimum per-unit fee, contract guarantee, or any other fixed amounts specified below. The Reseller is only required to pay the greater of these two options, not both. This pricing structure is designed to allow the Reseller flexibility in negotiating pricing with their customers, enabling them to optimize their pricing models while ensuring that the Supplier receives a fair and guaranteed minimum compensation. 1. Revenue Share The Reseller agrees to pay the Supplier a revenue share of at least 70% of the final sales price at which the Reseller sells the service to its customers. This percentage is exclusive of VAT, taxes, or any other applicable governmental fees. 2. Minimum Price Per Unit The Reseller agrees to pay the Supplier at least €[x] per unit delivered or service rendered by the Supplier’s offering. The per-unit fee is calculated on a per-usage basis, exclusive of VAT and any applicable taxes. 3. Minimum Contract Duration The agreement between Supplier and Reseller shall have a minimum duration of 1 year from the effective date of this Pricing Schedule. The contract may be automatically renewed unless otherwise terminated in accordance with the terms of the master agreement. 4. Minimum Annual Guarantee The Reseller agrees to provide the Supplier with a minimum guaranteed payment of €[y] per year, to be paid in monthly installments over the course of 12 months. This guarantee is payable starting in month 1 of the contract, regardless of the actual volume of services provided. 5. No Setup Fees The Supplier agrees to waive all setup fees for the implementation of the services. This waiver is part of the pricing model to ensure smooth collaboration and business continuity. 6. Flexibility in Reseller Pricing Models The Supplier acknowledges the importance of providing the Reseller with the necessary flexibility to determine and adjust its own pricing models for its customers. The Reseller shall have full discretion to determine the sales price to its customers, provided that the above revenue share and minimum payments to the Supplier are met.

Hey folks. I'm currently working on optimizing price increases which has me re-evaluating how we've structured our commercial agreements. Right now most of our customers sign a one year contract term then ~3 months before the term ends our reps start their outreach to engage in renewal conversations asking for another one year contract. Also, most of our contracts have price increase language that states we'll increase their price at the greater of CPI or 5% at renewal. We have a lot of these agreements setup to auto renew, but even if that's in place we try to get customers to agree to the renewal terms so there are no surprises when they get the invoice. We have 4K+ customers so there's a lot of energy going into just renewing existing customers. This has got me thinking about trying to propose moving to agreements that are more "evergreen" and require less renewal effort. @Ulrik Lehrskov-Schmidt's book has a Contract Framework that paraphrases a cancellation clause as "Customer is a customer of SaaS business until Customer chooses to cancel this contract as per cancellation terms." I'm curious how this works in practice. I guess we could still have customers commit to an initial one year term then after one year just have it say in the contract that they (or we) can cancel with 30 days notice. That would solve the problem of the labor intensive renewal discussions. What I'm not sure how to solve for is payments. We would still want to have most customers pay annually so if they paid for 12 months then canceled effective end of month 3, we'd have to refund them 9 months of the payment. Additionally, I want to get rid of 5% or CPI price increase language and just have the contract state that we can increase price with 30 days notice. This gives us a lot more flexibility with executing price increases as right now we're pretty much stuck with only being able to increase price at renewal. I'm curious if any of you have experience with best practices here. Is there a way to get out of these painful renewal motions without moving to a monthly subscription? Even just understanding the most common B2B SaaS Contract Frameworks as it relates to renewing customers would be really helpful.

Hi guys What community activities and content would you like (or even participate in)? Stuff I can do: 1) Open Q&A with me (e.g. monthly) 2) Teardowns: send me your pricing case and I'll record as I open it up and provide live feedback. 3) Webinars on topics (like the ones scheduled) 4) ? ... let me know Stuff community members can do (but I can help arrange): 1) Cases: go on a podcast with me and show off your pricing project: objectives, process, new model, outcome, learnings etc. 2) Pools: e.g. 'How often do you change pricing?' 3) Guest speakers: we invite people to come and give an AMA session, present their work, their new book etc. (or that guest speaker is YOU!) 4) Collaborative Document Creation: someone posts a link to a google doc with a 1st draft of a document like: an email to tell customers prices go up / end of life of a product / job posting for a pricing manager / SOP for sales to give discounts / ?? - community can then edit, comment and create a 'final' version (or 7 different versions), which gets put in a common library for all. 5) Experience marketplace: e.g. "I need some coaching on how to get Sales to stop selling bespoke solutions. I can offer tested framework for how to prioritise feature development in collab between Sales and Product" -> people find each other and take it to a private conversation. 6) ??? let me know your ideas Use this thread to discuss, suggest and just to let me know what you'd actually invest time and attention in consuming, participating in etc..