Holm: Pricing model shifts create friction that must be offset by volume
Karsten Holm · How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk · Dec 3, 2024 · at 27:53
Karsten Holm, VP of Pricing and Monetization at Splunk, explains the structural friction caused by transitioning enterprise pricing models.
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“Every single time it's a trade off, right? Because whatever you change to, it has no linear correlation to the old model. So there are always going to be some winners and losers in this. The winner's going to take their wins. They're not going to give you the excess value they generate and pay more. And the losers are not going to pay more because you change your pricing model, right? So at the end of the day, every time you make a change, there is a little bit of friction and you better be sure to make it up in volume at the end of the day.”
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