The average SaaS company spends just 6 hours determining their pricing strategy

Statistic Info

Pricing is the most important lever in your business. True, we’re a bit biased given we work with pricing all day, every day. However, think about the fact that everything you do in your business, from sales and marketing to your product and support, works to drive people to your pricing page, convert them, and keep them around as loyal customers.

Yet, we’ve found that companies only spend 6 hours on their pricing strategy in the entire history of their business. Not six hours a year. Not six hours a quarter. Six hours total. That’s kind of like trying to power a jet with a steam engine.

More Growth Strategy Stats

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

SaaS solutions have the highest security features with 95% security failures due to human error

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

A 1% increase in pricing strategy yields an average 11% increase in profit

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.