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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 2d ago
Competitive intel
Are there any free websites that provide information on companies' pricing strategies and list prices?
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New comment 4d ago
Pricing in stages
Hi everyone I am launching an online community for project managers later this year. I am in doubt of pricing this. I think the “right price” is around 200USD pr year. But much of the value comes from other members and premade content (templates, guides, courses) so I am not sure I can charge that in the beginning. So I will that by charging 50USD, then 100 USD and then finally 200USD. My question is, should I state that from the beginning, that at a fixed date in the future it will go from 50-100 and another future date it will go from 100-200, or should I simply start with 50, and then later on raise the price? I am unsure if it would scare of people in the beginning? I will grandfather the 50USD even when it’s 200USD. I look forward to hear your advise.
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New comment 9d ago
Value metric update
Hi team, is there any public case study that talks about how an organization with consumption-based pricing model moved from one value metric to another one? What are the operational steps they followed?
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New comment 12d ago
Greedflation -- is it real?
Atlantic interview with an economist digging into inflationary causes especially in the grocery industry. Lots of great references to academic research in supply chain, and behavior concepts like price wars, prisoners delimma, rocket/feather pricing... Whitelable/store brands get a focus near the end. (It's entirely US centric discussion, FYI for this broader global audience.) https://www.theatlantic.com/podcasts/archive/2024/10/greedflation-inflation-grocery-prices-corporate-greed/680432/?utm_campaign=the-atlantic&utm_content=true-anthem&utm_medium=social&utm_source=linkedin
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SaaS Pricing
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