I recently had the pleasure of joining Vijay Damojipurapu on the B2B Go-to-Market Leaders podcast. We dove deep into the often-misunderstood world of B2B SaaS pricing strategy. Our conversation explored how pricing isn’t just a tactical decision but a strategic lever that directly impacts company growth and customer success.
Topics We Covered
- Customer-centric pricing: Moving beyond features to understand who values your product and why
- Internal psychological barriers to effective pricing (particularly anchoring bias)
- Starting the pricing strategy early in the product development process, not as a last-minute decision
- Segmentation insights revealed through pricing research
- Organizational ownership of pricing decisions (who should ideally lead pricing strategy)
- Using pricing research to inform broader go-to-market strategy
- Preparing stakeholders for unexpected research results
Timestamped Overview
00:00 Defining “Go to Market”
06:04 From Coding to Value Creation
08:20 From Software Developer to Product Marketer
09:44 Who Should Own Pricing Responsibility?
15:42 Pricing Strategy Emerges as Key Focus
16:58 Broadening Product Market Fit Concept
20:43 Scaling Strategies for B2B SaaS Companies
26:05 Preparing Stakeholders for Unexpected Outcomes
27:25 Product Marketing’s Role in Beta Programs
32:46 “Pricing: Value Relativity Explained”
35:14 Product Pricing Strategy Shift
37:42 “Customer-Focused Solution Priority”
Key Insights from Our Conversation
The Psychology of Pricing Goes Both Ways
One of the most revealing discussions centered on how pricing psychology affects customers and internal stakeholders. I shared a particularly illuminating example where we conducted market research for a client and discovered customers were willing to pay 4x their originally planned price point. However, executives had already become emotionally anchored to their arbitrary initial figure:
“Despite 2x being completely arbitrary, the executive team had become emotionally anchored to it. They were uncomfortable with the idea of charging 4x more than their customers would have been. It’s a perfect example I see all the time where we think business decisions are purely rational, but humans have interesting relationships with money.”
This highlights why preparing stakeholders for unexpected research results is crucial in pricing work and any business research initiative. When people become attached to initial assumptions, data that contradicts those assumptions often faces resistance.
Price Your Customers, Not Your Product
Throughout our discussion, I emphasized that the fundamental shift companies need to make is moving from product-centric to customer-centric pricing:
“The first mistake that we make in the idea of pricing our product is pricing our product versus pricing our customers. Because the product is just a thing… It has no value. Humans ascribe the value.”
This perspective transforms how companies approach segmentation and value communication. Understanding which customers value your solution most—and why—becomes the foundation for an effective pricing strategy.
Contextual Value Perception
We explored how value is always relative and contextual, much like how the same cup of coffee is priced differently at a convenience store versus an airport:
“Value and willingness to pay are relative and contextual. They are not an absolute. It’s not like Planck’s constant out in the universe… It is a measure of desire.”
This insight helps companies break free from the trap of thinking there’s a single “correct” price for their offering, instead recognizing that different customer segments perceive value differently based on their specific contexts and alternatives.
The OpenAI Example
One timely example we discussed was OpenAI’s launch of their GPT-4 Pro tier at $200/month—a 10x increase from their Plus tier. This real-world case illustrates how companies can successfully introduce dramatically higher-priced tiers when they align with distinct customer value perceptions:
“We as product leaders or product marketers, we’re immersed in our product every day. We know what the road map is. We know all the features it doesn’t have yet… But that’s the wrong view. It’s not about you. It’s about your customers desperate for a solution.”
Final Thoughts
This conversation highlighted why pricing remains one of the most underleveraged growth opportunities for scale-up B2B SaaS companies. When approached strategically—with proper customer research, stakeholder preparation, and a focus on segment-specific value perception—pricing becomes a powerful tool for acquisition and retention.
Want to discuss how strategic pricing could unlock growth opportunities for your B2B SaaS company? Contact me to explore how we might work together.