Pricing

“Custom, custom work at standard pricing means you're effectively donating your margin to your pickiest clients.”

“Try to hold out on talking about pricing until post demo, because you might, they might assume, oh, this is three times what I'm spending and not know why it's three times.”

“Your price should be predicated on your sales cycle, right? Like if you can get a deal done in 90 days for a hundred K, do that all the time. Right. If it takes nine months to get a deal done, you've got, you probably should be charging two 5300.”

“Pricing is the biggest lever in SaaS. And I think positioning is number two.”

“The lower your prices, the higher your churn, the higher your support burden”

“A gatekeeper is different because the sale with the gatekeeper is you're not selling the product because that's not their decision to make. You're selling the chance to pitch the decision maker. Versus if you have a non-decision maker in front of you are, you …”

“When the price is 99 cents and it's consistent, you never have to think about price. And so you would preview a song, decide whether you like it or not. And if you did, you bought. And so there was never any transaction, a billing transaction that you had to t…”

“The pricing was already pretty good, but we had some revelations talking to customers, and Hearing some stories or some revelations where we reset the prices, not dramatically, just like certain things in 2012. And that's when we really took off. That's like w…”

“A core principle of pricing is you don't want to price by cost. If you can avoid it, you want to price by value, right? Like you want to price, you have price where you're getting a percentage of the business value of, you know, especially when you're selling …”

“High prices are really underappreciated. High prices are often a favor to the customer. It's actually really funny. A lot of like, The naive view on pricing is the lower the price, the better is for the customer. The more sophisticated way of looking at it is …”

“Once the numbers make it obvious. That something's working. Pricing just go. Yeah. Pricing is going to go to the point where, you know, you're pricing in that two X best case.”

“Sometimes you can charge two, three, four, five times more when you have better design.”

“If you are impacted by pricing, and you want to change your pricing, there's a lot to that. You have to think it through, you have to, it'll probably take you a few weeks to both think it through, and then implement it, and then communicate it, and this and th…”

“Otherwise, I think you shouldn't, don't innovate so much, too much on pricing. Do whatever works today.”

“You price based on time saved, 20 to 30% of manual labor costs. You focus on quantifiable ROI.”

“Pricing is the number one lever in SaaS. And if you it up, you can have An amazing business that should be a million dollar business that is actually a 200,000 dollar business. Like, I've seen companies do that, and you can do the math, it could be a ten milli…”

“Because if it's really quick to build, you're not building a data proprietary moat around what you're building. It's gonna be really hard to sustain the pricing that you see today, and that's gonna become a really, really challenging business proposition.”

“In the early days, just get close to customers. It almost doesn't matter whether you get, you don't need to optimize pricing. Kill basic, keep it, do a little A-B testing if you can, but it don't matter. Just close them, right?”

“First off, I want to try and make you reset your mind about what pricing is. I call it, it's another product feature. And just like other product features, it changes what your customer's behavior is. And so you should think about it the same way and use it in…”

“Pricing is one of these things. Once you have it out there in the market, it's really hard to roll it back in, right? It's like a one way door, right? Once it's out there, tough to reel it in.”

“One thing to warn about pricing is that you're going to see a lot of providers jumping in, and everyone's just trying to get the piece of the pie. So, so, so like with some of the previous model launches, you see some people coming in at lower and lower price,…”

“One of the most surprising things I learned was that when a customer really wants your product, it's hard to scare them away by quoting a price that's too high.”

“Pricing and packaging is a art. You don't delegate that to an external agency, but you've got to have a sense of intuition of what the market bears, what the customer's thinking and doing the research. That's my one recommendation is think deeply about packagi…”

“The second most important thing is to get like the price out of the way in the very beginning. Because what always happens, you go through this whole pitch and then people say, okay, I'll call you back. Let me think about it. And that's the worst thing that ca…”

“What you want to avoid the situation where you look at your customer base and basically you got a 120 customers and there are a 120 different price plans because that creates like a lot of no predictability in terms of what happens when I change pricing.”

“My thoughts is he's still probably vastly underpriced and he should probably 10 X his prices overnight.”

“In my decades of doing this and then advising and investing, I can think of definitely two companies. I mean, I'm talking thousands and thousands that I've seen and that I've advised to raise prices and all that. I think two for sure that I can think of by nam…”

“And in fact, if you're not getting any complaints about price, then your price is too low.”

“Nine times out of 10 innovation, innovating on pricing is a terrible idea because it confuses your market.”

“Pricing is, like, deceptively difficult. We had a principle around, like, aligning price to value. You know, people should pay based on the amount of value they get in the product. Easy to say and incredibly hard to do. Value is subjective.”

“You cannot answer these questions by running limited time only experiments with your pricing. You have to go all in to really understand how users will respond.”

“And inevitably, we hear that people are spending almost all the time on that sales and marketing stuff, especially at the founder stage, right? Spending almost all their time, they mostly guest on their pricing work, and they're not really working to gather da…”

“Your pricing need to be relatively simple. If your pricing is super complicated, they need to, whenever they, for example, they try the product and they love it, they have a sales checkout flow, but in order to decide how much they need to pay, they need to se…”

“You should be increasing your overall price once per year. If you're building, if you're not building and your support sucks and your NPS is low, then, you know, don't worry about it. But if your NPS is over 20, which is not a very high NPS, you should raise y…”

“Most companies don't change their actual number that they're charging once, but every three years.”

“I think a lot of people, for example, think pricing is a trapdoor decision, but actually like it's really easy to grandfather your existing users into some existing pricing model and change pricing for future users.”

“When your product development work is never done, neither is your pricing, and you need to combat that along the way.”

“When you're just getting started, the important thing is to just find the right order of magnitude for your pricing.”

“Pricing isn't permanent. This is really important. It often takes years to iterate and capture the full value of the product that you've built from your customers.”

“Another way to find your value is to keep incrementally raising prices until you get pushback from users. And when you keep incrementally raising your prices, you will ultimately find the ideal price, which is when customers complain, but they still pay.”

“On the other side, if you were to actually charge a lower price and they say, yeah, that sounds great, and accept immediately, Well, that probably means that you're pricing too low and you're leaving a lot of money on the table.”

“Lower prices are not a sustainable advantage. Sometimes we talk to founders and they say, well, our product is just like our large competitor, except ours is cheaper. And that actually does not sound like a good idea. That's not a way to build a winner. All th…”

“We increased our pricing like multiple times in the early days pretty dramatically. And we, and when we did it, we actually removed it from our website as well.”

“If you didn't put pricing as part of your product market fit validation, you're often hearing what you want to hear. It is truly about understanding whether, you know, customers are willing to pay for your innovation and willingness to pay is a proxy for do pe…”

“When I'm looking at pricing of a startup I love to say like, encourage abuse instead of limiting the usage. And I actually mean that because like, if you, if the person will on the other side will see the value out of the tool and will abuse your tool, that me…”

“Pricing is a huge leverage. Lots of SaaS companies don't charge enough, so increasing pricing or experimenting with pricing is generally always a very good idea”

“For a hundred units you would pay depending on what kind of service you would opt for somewhere in between, let's say a 500 and a 1500 years per month.”

“Pricing is based on TAM. So we got kind of two categories. One is on a per experience base basis. So these are for things where the TAM is smaller, smaller user base. So that's at a 4565 hundred, or 8500 a month, depending on kind of the different, different f…”

“And then, by the way, if customers complain about price, that doesn't mean the price is too high. It is too high when they abandon you. If they complain and they don't abandon you, in a weird way, they're confirming that your pricing is pretty good.”

“We've changed our pricing, I think, nine times.”

“And the reality is you should be testing and changing prices all the time to be figuring out, you know, what's the optimal price point? What are people willing to pay for? And there's no need to write anything every time you like test out some new pricing.”

“When folks come into the tiny seed batches within the first few weeks, I mean, that's the biggest lever in SaaS, right? Is, is pricing. You know, you don't need to build new features. You don't need to get more leads. You can, Double growth if you were to doub…”

“You know, I've said pricing, it's the biggest lever. It's the number one lever in SaaS. It's, you don't have to build a new feature, you don't have to build a new marketing channel, you don't have to add more leads, but changing your pricing can literally make…”

“If no one's complaining about your pricing, very likely you're too cheap.”

“Pricing is the number one lever in any business, but especially in SaaS where it's recurring, pricing is your number one lever. It's the easiest thing to change and to double growth overnight.”

“Now, and also this year, so we are changing pricing every six months, more or less.”

“Every 12 to 18 months, step back and say, we've built this new value. We've created all this value for our customers. Are we being compensated appropriately for that value?”

“One of the things that has, I've learned working with more and more companies is that more types of decisions are type two decisions than you think, the type of decision you can actually roll back and get another shot at. It's maybe, you know, I, we don't work…”

“Price and anything related to monetization is really tough, because it's basically a system of incentives, and it will change people's behavior. And so you have to observe these things over very long periods of time to make sure you're getting the right answer…”

“Even if one percent change in pricing can lead to, you know, 10 to 15% increase in net profit.”