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Saas or not saas ? That is the question
Thank you for the insightful content! I have a critical business dilemma and would greatly value your perspective: One of my few but important SaaS clients insists on owning the code and solution to eliminate competition. I see three options: 1) Refuse and stick to the SaaS model with other clients, risking losing this key client. 2) Agree to share some intellectual property to protect her while maintaining my ability to serve others. 3) Sell my company to her. Could you help me clarify the best path forward for my company’s future? Thank you so much!
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New comment 12h ago
ROI format: Goal to earmark budget. ASK: Layout for 1 page slide/sheet
Wondering if anyone has seen a good ROI layout to pass the 'yes, we can earmark budget for this' phase... as in, not at detailed proposal/pricing phase We also want to use this "ball park pricing" phase to test new packaging ideas for early feedback. Context: Deal sizes $50-$300k ARR e.g. --- 1. Situation - why it matters 2.Current setup today • what it costs • how its done (summary) • risks + implications of current mode 3. Proposed Solution - what it costs - how its done (optional) - UPSIDE: Budget Savings, efficiencies, improved X & risks reduced
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The role of packaging when using a credit based price model
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
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New comment 4d ago
What are your communication best practices?
You've designed and tested the new pricing, the client has given the green light, you have aligned on a roll-out plan, and the last step is communicating the change to customers. Our go to recommendation was sending out an email a month in advance to each customer affected (the February cohort would get this in January): 1. Clearly state in the email title that the pricing is going to change 2. Inform the client of the value you are providing (as framing of the value was likely to change during the pricing project) 3. Inform o the new price (and possibly new plan) and when it will change 4. If applicable, inform about a loyalty discount 5. Explain what is the reason of the change (adding more value to customers is an evergreen) How do you approach it? Is there something missing here? Do you think there is a need to send additional communication? Personally I think that there is no upside to a price-hike forewarning, as the only action we incentivize for the client is reviewing alternative solutions... But I might be completely wrong, so please share your experiences!
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New comment 11d ago
Target Discounts
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
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New comment 15d ago
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SaaS Pricing
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