On an episode of the SaaS Backwards podcast, I joined host Ken Lempit to discuss one of the most impactful levers for scaling SaaS businesses: pricing. Together, we explored how well-structured pricing strategies drive growth and their profound effect on revenue, profitability, and company valuation. Ken and I examined the importance of aligning pricing models with customer value perception to thrive in today’s competitive SaaS landscape.
Key topics we covered in this episode:
Three growth levers for SaaS: acquisition, monetization, and retention.
The role of good pricing in business success.
Impact of pricing on sales, win rates, and customer perception.
Long-term profitability considerations in pricing decisions.
Ep. 142 – Why SaaS Pricing and Packaging Matters More Than You Think – with Dan Balcauski, Founder & Chief Pricing Officer at Product Tranquility
22:00 AI’s Role in Pricing Strategies and Limitations
24:42 Aligning Executive Goals for Unified Success
27:27 Refining Product Pricing and Differentiation Strategies
31:17 SaaS Pricing Models Overview
33:53 Pricing Challenges Hindering Business Goals
36:29 Challenges in Pricing and Discount Strategies
Potent Quotables
The Myth of Static Pricing in SaaS:
“This myth out there that somehow pricing and packaging is set it and forget it. Like, oh, we did pricing 2 years ago, which means it’s done.” — Dan Balcauski
The Political Side of Pricing:
“It is one of the interesting parts of pricing and packaging is that it is one of these areas where every C-suite executive at the table has a big stake in what the answer is.” — Dan Balcauski
Want more B2B SaaS pricing and packaging insights? Follow Dan on LinkedIn and Twitter.
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