Pricing is tough. My questions are 1. How do you know that you have the right price/package structure pre-launch. 2. And how do you know that the price/packaging is still the best post launch.

1). Pricing & packaging is a complex topic that typically involves coordination between many internal constiutents and teams including Sales, Customer Success, Product, Finance, Deal Desk, Marketing, etc. It's important to make sure that you have alignment between these teams as you embark on any pricing and packaging changes. A key is you need to align on what problem(s) you are solving for. Are you looking to increase demand or remove friction from the selling or buying process (perhaps lo ...Read More

Pricing is tough, and it's also never done. That being said, making incremental changes too often without understanding the impact of the previous change is the achilles heel of monetization.  You will never "know" pre-launch that you have the right price. There are a lot of things you can do to increase the probability that you are in the ballpark though. Inputs are going to vary based on your industry and business model and selling motion, but will almost always include some kind of internal p ...Read More

Fully agree that pricing is tough. I’ll add my own point of view on top of that: pricing is tough and there is no “good” pricing. I have been lucky to work at 5 great B2B SaaS companies, and each of them have had frustrations with pricing, gone through pricing changes, and knew that there were aspects of their pricing model that customers didn’t like. As the folks that drive messaging around that pricing, this is super important to get internal clarity on. So often I hear folks say “can we just ...Read More

Pricing is both tough and is not one-and-done - it has to be refreshed over time. While you can use research to figure out initial pricing for launch (see one of my other answers for details on figuring out willingness-to-pay (WTP)), you will need to reevaluate pricing over time to see how it needs to be updated - e.g. are you getting negative feedback from customers? Is Sales having a hard time maintaining your price and so has to resort to deep discounting consistently? Has your product signif ...Read More

Pre-launch:You won't always know if you have the right pricing from the beginning. You're always going to have some elements that need to be validated. Your best bet is to always speak to sales, speak to customer success, and speak to customers before making a call. You should also have a look at the competitive landscape to see what's working.  Post-launch:You'll have to pay close attention to conversion rates from traffic to demo, demo to a customer, customer to upsell. Are we converting more ...Read More