Princen: SaaS businesses have COGS between 5% and 15%
Guillaume Princen · SaaS Metrics Masterclass: Pricing Strategies and Billing Models with Stripe · Oct 11, 2018 · at 5:00
This episode carries Guillaume Princen's own address, with nobody on the show putting questions to them. It still counts as said, and it is kept out of every score on their page.
Guillaume Princen, Stripe's Head of France and Southern Europe, explains core unit economics and benchmark gross margins for SaaS companies at SaaStr Europa.
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“SAS businesses don't have high cost of goods sold. So, you know, they have between five and 15%.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Guillaume Princen
Princen: Requiring credit cards for free trials improves lead quality
“Requiring credit card details before a free trial usually helps. Cause you get much more qualified kind of people. You can focus more on, on those.”
Princen: Hybrid SaaS sales models fail often because company DNA favors one style
“There's obviously a hybrid models. Companies try to do both and some of them succeed, but it's actually hard because the DNA of the company is usually either on the left side or, well, either low touch, either high touch.”
Princen: 10% monthly churn in low-touch SaaS means zero product-market fit
“Two percent is a very good monthly churn for a low touch type business. Five percent is okay. 10% is a problem. 10% basically means you don't have any product market fill market fit and your business is, you know, is not sustainable.”
Princen: High-touch SaaS churn exceeding 15% annually is highly dangerous
“Seven percent annual churn is good. It's actually very good. 10% is kind of reasonable, but you want to be careful if you start going beyond the 10, 15% range.”
Princen: SaaS businesses must let quitting customers leave to avoid chargebacks
“Let real quitters quit. Otherwise you're going to enter all sorts of problems. You're going to have chargebacks. You're going to have extra costs because people are going to start to say, no, I didn't want to pay for this service bank. Please, you know reimbur…”