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
The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months
More Growth Strategy Stats
To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)