We want you to look at pricing the same way you look at other business functions, because at the end of the day pricing is the greatest leverage that you have on your bottom line. Empower your organization to be in tune with your customers and always be optimizing for profits. If you remember nothing else from this post – remember these few points.
Pricing is a constant process that is fueled by tons of customer data
A pricing committee is the strong grip of a hand that cranks your pricing lever
You should be evaluating every quarter and making sure that your personas are quantified
You should be making minor changes every three months, and major changes every six
Improve your product so that you can improve your pricing. 1% increases in price yield 11% increases in profit.
More SaaS + Software Stats
Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.