In a recent installment of the MicroConf webinar series, I joined host Sonia Leung to explore the nuanced terrain of pricing and packaging within the B2B SaaS market. We dissected the critical topic of the “7 sins of SaaS pricing” in a lightning-round session jam-packed with real-world examples and solutions.
Key topics we covered:
- Importance of clear, simple pricing metrics.
- Customer engagement in pricing and packaging.
- Strategic management of pricing and packaging.
- Impact of inflation on software pricing.
- Pricing based on customer value perception.
- Role of discounts and price premiums.
- Geographic and customer segmentation in pricing.
Timestamped Outline
05:23 Common mistakes in pricing and packaging for SaaS.
11:12 Using customer willingness to pay to drive feature road map.
23:08 Van Westendorp’s pricing sensitivity meter
24:58 Optimizing price structures for offers.
Potent Quotables
The Painful Insight on Business:
“The truth is that customers don’t care about your features.”
— Dan Balcauski
The Myth of Adding More Features:
“Adding more and more features to a package does not necessarily translate to more value.”
— Dan Balcauski
The Pitfalls of Discounting to Close Deals:
“There’s very little, empirical support for giving a discount just to close a deal. And in fact, you’ll end up seeing a very negative, perverse incentive where those customers who you have to discount the most to close on initial sale tend to be those who churn highest.”
— Dan Balcauski