When was the last time you revisited your pricing strategy? Your SaaS Pricing Strategy impacts everything:
💰 It impacts your Ideal Customer Profile.
💴 It impacts your Win Rate.
💶 It impacts Churn.
🤑 It even impacts your competitive dynamics.
And yet so often – we end up undercharging for our products. I've seen companies 5X their pricing and their win rates went UP as a result.
I've seen companies revamp their pricing strategy and realize how they need to dramatically shift their ICP to make their numbers work.
After having helped over a hundred SaaS companies in revamping their pricing strategy, here are the 3 most impactful SaaS Pricing principles I've learned:
The year was 2016. My high flying SaaS company was declared a “zombie” almost overnight because 3 things happened all at once: 1/ A board member retired 2/ My VP Sales quit after 3 weeks 3/ SaaS multiples crashed
But we survived and exited. Here’s the 3 things we did: 👇🧵
It was the worst year of my life. And it was this year the ethos of Unstoppable came alive for me and my team. “If I don’t quit, I don’t die. And there’s always a way forward so I’ll never quit” became our mantra.
Here’s what I did first….
1/ We were burning too much cash. And the next round looked impossible given public market comps. So we carefully orchestrated two RIFs while ensuring we kept booking revenues. It worked. With half as many employees, we booked just as much revenue.
There are 121 days left in 2022. Here are 12 ways you can kickstart growth and finish this year strong for your B2B/SaaS business:
1/ Get a hold of your Marketing Math. Math never lies. For starters, just look at your Traffic to Lead %, Lead to Oppty %, and your Win %. Go focus on the one that sucks the most.
2/ Find your happiest customers. Ask them for a referral. Referral opportunities have a 70% higher conversion rate.
I was at an investment event last night and the folks there asked me what're the top 3 reasons I see Founders fail. Having worked with 250+ Founders and served thousands through my Youtube channel -- I had to pause to think but the answers came quickly:
1) The "One more feature trap" -- Founders who keep building and hoping that they're that one feature away from product market fit and everyone clamoring for their product never quite ever hit product market fit.
Instead, they spent months building the wrong product and then burn out and then die. Start with GTM early instead.
Anyone that is telling you that’s how an Entrepreneur lives is lying.
The truth is… when you’re scaling a company….
It’s like narnia.
The first thing you do is you wake up and check your phone and see if things are still OK. And then you’re doing some sort of dance of skimming emails and showering, and double checking your calendar to make sure you’re not late.
That’s the reality.
And sometimes, just sometimes, we get better at it over time. And find some sense of normalcy.
So here’s the big question…
How do you actually get more done as a Startup CEO?