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SaaS Pricing

Public • 512 • Free

11 contributions to SaaS Pricing
The role of packaging when using a credit based price model
For those of you with experience using credit based price models, I'm curious what you're perspective is on how packaging fits into the broader monetization strategy. I ask because if you're using a credit based price model, you presumably have a lot of flexibility with monetizing the usage of various areas of your solution. In that world, limiting access to features through packaging doesn't seem like it really has a place. I'd much rather focus on giving my customers access to all the features they need and encouraging adoption/usage to drive up credit consumption. Am I thinking about this correctly? Thanks! Steve
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New comment Nov 21
0 likes • Nov 18
Hi @Steven Meyer , you still have to sell the new/other features, as in convince the customer to start using them. Just giving them all functionality and assuming they figure it out on their own will not always be successful. Like you correctly statement you need to focus on encouraging them on adoption/usage. For me packaging here still has a place. Packaging is strongly related to the maturity of your user, where do we start and what are the next steps they should be taking or who is the next user/department we should onboard. So in that case we still need to the packaging exercise, but maybe we call it the customer success playbook then ;) Even when working with credits based pricing models, we work out packaging options, to facilitate easier thus faster sales.
Hiring for pricing: what do you want to know?
Hi guys I'm doing an 45 podcast/interview with @Joe Fleming, who is part of this community. Joe is a founding partner at Venortech and specialises in recruiting Pricing people for B2B SaaS. So: what should I ask Joe about recruiting, hiring, staffing etc for pricing? (PS: also let me know if this interview format seems like an overall good idea)
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New comment Sep 18
0 likes • Sep 18
Given Joe's experience recruiting pricing professionals in the B2B SaaS space, how does he see the requirements for pricing roles varying across different business types—like scaleups, corporates, and sectors like banking or finance? Are there specific skills or experiences that stand out depending on the company's size or industry? And next to that what is a typical growth path for such a professional in those industries?
Invitations to SaaS Pricing
So far I think this community is off to an amazing start. Is there a link I can use to invite other pricing folks I respect? I've entirely forgotten how I signed up.
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New comment Sep 13
1 like • Sep 13
It’s under members. + sign.
0 likes • Sep 13
https://www.skool.com/saas-pricing/about
B2B SaaS Pricing
Hi all. Currently, I'm working at a B2B SaaS firm (Firm A), providing solutions for clients worldwide, including the subsidiaries of our Group. Transfer Pricing Challenge In the transfer pricing model, my firm must carefully manage the pricing of its services to ensure: 1. Tax Minimization: Firm A subsidiaries aim to minimize profits to reduce their corporate tax burden. This is achieved by inflating internal costs (e.g., software licensing, infrastructure costs) to reduce reported profits. 2. Benchmarking: For services like network infrastructure, data centers, and proprietary e-wallet software (which have no direct competitors in the market), pricing can be inflated without market benchmarks to justify the costs. 3. Tax Compliance: The strategy must demonstrate that the cost structures make sense from a regulatory perspective, especially in jurisdictions like Myanmar where Firm A has significant investments. Evidence Constraints To create a framework for standardized pricing, Firm A: 1. Use a Cost-Based Pricing Framework: This method is widely used in transfer pricing, especially when benchmarking data is unavailable due to a lack of competitors or comparable services. However, pricing SaaS products is inherently challenging, as they are difficult to value. 2. Document Competitive Advantage: For services that cannot be benchmarked (e.g., proprietary e-wallet software or network infrastructure), Firm A can demonstrate how these products offer unique advantages. However, we lack the information about other competitors price, and if we set our price higher, we need to prove the value proposition thoroughly during audit. Key Question Our goal is to maximize profit through transfer pricing to our headquarters in Vietnam by increasing the cost of all SaaS products. We must develop research-based evidence to proving our pricing during audits. The main challenge lies in identifying evidence: strategies and supporting data that effectively validate our B2B SaaS pricing.
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New comment Sep 11
0 likes • Sep 11
Dear @Sofia D interesting question, I never realised this happened. A couple of options spring to mind, which are similar to Value Based Pricing: - ROI calculations, if there is no comparable solution on the market, but you are solving for something that is otherwise done in an other way, describe that way, calculate the cost of doing it in the other way and anker your price to the cost. If something is costing you 100 to get it done manually, than a solution can easily claim a price similar to easily 10% often (depending on impact go up to 30%). In addition to calculating cost savings, consider how the solution improves efficiency, reduces errors, or enhances scalability, and use those as additional anchors for pricing. - Focus on the benefit of the product, what does it solve for better than alternatives - What differentiates the solution from the alternatives. Demonstrating how your product uniquely solves specific problems or offers features that competitors do not have is crucial when defending a higher price point, especially during an audit Side thought, based on the risk taking profile of the local entity compared to the mother company, higher prices can be justified. Firms assuming greater risks or conducting more complex functions can justify higher costs (and therefore higher transfer prices).
What community activities/content would you like?
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..
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New comment Sep 4
1 like • Aug 27
@Ali Taghavi A start will be in the next webinar (tomorrow) on pricing models, if I'm correct. In the book there is a chapter 5 *wallet structuring* which covers this topic. Ulrik calls it, solving for complexity. Enterprise sales are complex, thus your pricing somehow can be complex. Different stakeholders - different wallets - different revenue streams to tap into. This at least should answer your questions on steps and the pricing.
1 like • Sep 4
@Eddy T. Something like this: https://youtu.be/zCmiq8hCFIY?feature=shared ? Here Ulrik breaks down his approach to a concrete example
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Maarten Laruelle
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6points to level up
@maarten-laruelle-5498
As the founder of Tsjirpa, I bring over two decades of strategic and operational expertise to the forefront of business scaling and market adaptation.

Active 9h ago
Joined Jul 29, 2024
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