Pricing,  Pricing Solution,  Pricing Strategy

Your pricing strategy is wrong. Now what?

You work for a SaaS company. Your team discovered the current pricing strategy won’t improve sales for the year.

You’ve bravely volunteered for the daunting task to create a new pricing strategy for your company. You rallied Product Managers, Head of Sales, Head of Business Ops and anyone you think will have a directly impactful opinion on the path forward.

Don’t have enough time to read through this post, but need help with your pricing? Let RevOps review your pricing page for free in seconds

You’ve performed market research, surveyed your customers via Van Westendorp method, reviewed deals won, reviewed deals lost, segmented your customers usage via K-means, vetted new pricing ideas with customers and drew up a grandfathering plan that doesn’t cause churn. After a few last minute edits to deal with executive details, you’ve got a number.

 

Underneath "Pricing Maximization" are 7 boxes that say research, segmentation, packaging, pricing, pricing, marketing, engineering, and launch. To the right of these boxes it states: "7 Steps to implement. Average Time: ~12 months; Humans Involved: 50+, Number of Tools: 10+"
The many stages of the pricing maximization process.

 

With pricing strategy in hand, you begin to design the technical integrations and document business logic changes. The engineering team reviews your proposal and responds:

We would have to change how the data is processed and figure out a way to support both systems. That will take about 3–6 months, but we don’t have enough resources to allocate towards it.

Re-allocating engineering resources from core features to change product pricing is assigned as low-priority. Your plan to migrate pricing is blocked.

Now what?

You’ve weighed the pros and cons to three possible choices:

  1. Find a budget and hiring a Salesforce Engineering consultant to build a separate solution for you.
  2. Escalate to executive teams for prioritization of engineering time.
  3. Call a professional services company to install a new solution.

Between finding a budget or requesting prioritization, it’s an uphill battle that will only elongate the time to improving the overall sales pipeline. A professional services company will take 12–18 months to install a new solution.

At this point in the process, people don’t believe its going to ship and a lot of fear, uncertainty, and doubt starts to ruminate.

What if you could meet your sales goal faster?

What if you had a solution that didn’t require many month long cycles of engineering to change pricing? What if you could avoid professional services companies altogether?

You’re not alone. RevOps wants to put the conversation together with industry leaders in SaaS and you. Talk with leaders from early to late stage companies about Pricing! Learn about how you can reduce the time it takes to ship your models. Become agile with your pricing.

Sign up for our community today, the first dedicated community to helping companies with Pricing.

Special thanks to John Solis.


This post was originally posted by Adam Ballai on April 16, 2018 on Medium.

CEO and Founder of RevOps

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