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

Hey folks. Context: I'm working on introducing better pricing guidance for our B2B SaaS product that's sold using a sales led motion. Today we just have list prices and we want to introduce target prices. We've never published our list prices nor put them on customers' agreements so we have some flexibility with changing these to fit our needs. We do want to move to showing customers the list price, discount, and net pricing on agreements. This will help us more effectively expire discounts that are intended to be short term (e.g. 1st year). Question: When you're thinking how to set list vs. target price (target discounts), what have you seen work well? Hypothesis: My initial thought is to set the target price 10% - 20% below the list price. Here's my rationale: 1. If sales starts the negotiation at list, it gives them some room to negotiate down to target 2. If we want to setup most of those discounts as 1st year only discounts, then the price jump for customers isn't painfully large 3. Our discount escalation policy is setup so AEs can discount 10%, Sales Directors (20%), RVPs (30%), etc. Targeting a discount of 10% to 20% should keep most deals from reaching the more senior approval levels. Would love to hear some thoughts on the topic if anyone has any. Thanks in advance! Steve

Are there any free websites that provide information on companies' pricing strategies and list prices?

This is something that I would appreciate in this community's opinion: how applicable are the Van Westendorp questions for the initial launch pricing of a B2B SaaS solution? The four standard Van Westendorp questions are: 1. At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive) 2. At what price would you consider the product to be priced so low that you would feel the quality couldn't be very good? (Too cheap) 3. At what price would you consider the product starting to get expensive, so that it is not out of the question, but you would have to give some thought to buying it? (Expensive/High Side) 4. At what price would you consider the product to be a bargain—a great buy for the money? (Bargain)

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.