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SaaS Pricing

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1 contribution to SaaS Pricing
How to kill a hydra? (without Hercules on staff)
Hi Ulrik - I've read your book 3 times - its become the cornerstone of a major pricing project at our 10+ year old SaaS. We've built a hydra and its complexity is driving up dev, sales, support and marketing costs - and killing sales. We need to repackage, but from a 'jobs to be done' perspective we have smaller customers who have only a handful of users doing many jobs, and larger customers who have many stakeholders who split and specialize these jobs job into many smaller jobs. What might you suggest to unwind the hydra and can we overlap jobs to address different sized customers? I think we have found fair (confirmed by a few customer interviews) metrics which can differentiate between the larger and the smaller customers, but the packaging still seems tricky. Thanks!
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New comment Aug 22
0 likes • Aug 21
Thank you, Ulrik! 🙏 I think we are on the right track - its a complete overhaul of our packaging first, and then likely a different metric for pricing (acres, throughput, etc.) instead of user license counts. The friction with sales and upsell is just too high, and you are bang on regarding how the sales person needs to act more like a pharmacist in order to prescribe the correct set of modules and add-ons to ease the prospects pain. We’ve struggled to come to terms with fencing - but your suggestion to fence by region is probably critical for purchasing power parity - and also fencing by commodity should also help funnel customers towards their best package.
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Matthew Deir
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Active 39d ago
Joined Aug 21, 2024
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