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How to aproach larger companies that will only work with you if you sell them the platform
Thanks for accepting me in your community. I have spent two months reading The Pricing Roadmap book and watching Ulrik´s videos to improve my company aproach on pricing. We have a lot to work and learn and is super exciting to carry on this project. I have, however a much pressing question. We provide a monitoring and control saas service for mining, water utilities and energy companies and we also install and mantain our monitoring instruments. We deal with much bigger than us, cupper mining companies and pulp companies, among others. They frequently pick their suppliers on biddings and lately some of the biddings require we sell the platform to them because they want complete control on their data. Related to this, some big energy intensive companys have told us, no, we cannot work with you because all our data must remain within the house for security resons. So, I was thinking.. A "job to be done" would be ...I want others to develop my platform but I want to run it withouth the data going out. If we develop, and deliver an entire platform for each of this requests. How are we suposse to charge? and more important.. should we do it? Could we answer in other way with out losing this opportunities? If you could guide me in this, I would really aprecciate it. Kind Regards and excuse grammar english mistakes.
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New comment 18d ago
SaaS Contract Framework for Price Increases
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.
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New comment Oct 5
Usage metering tools
Hi pricing community, I’m looking to hear about anyone’s experience using third party tools to help implement usage metering. If you’ve done this, would you mind sharing a bit about your experience (i.e. which tool, problem it solved, duration of implementation, pros/cons, etc.). Thank you in advance!
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New comment Oct 2
Operations/backend activities for a successful packaging & pricing project
Good morning, I am curious to understand what you have seen as key success factors when it comes to work that needs to be done behind the scene (i.e. systems like CPQ, masterdata, managing your SKUs...) in order to successfully execute a new package and pricing design. Thanks!
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New comment Sep 6
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
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