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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

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5 Interesting Learnings from Xero. As It Crosses $650m in ARR.

SaaStr

Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! But, they were also able to raise prices. They also raised effective prices, however. What lessons can we learn from this huge Kiwi SMB success, for other founders?

SMB 270
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Clouded Judgement 10.11.24 - Budget Flush

Clouded Judgement

For software companies, this phenomenon can be a tailwind, as it drives accelerated deal closures and increased sales velocity, sometimes with less price sensitivity from buyers looking to quickly deplete their budgets. As a result, software vendors often see an uptick in revenue and bookings during these periods. Cloudflare is up 17%.

Cloud 167
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5 Interesting Learnings from Fastly. As It Gets Ready to IPO.

SaaStr

We all know this from AWS and Twilio on down, but Fastly is a visceral reminder. Yes, Fastly is a developer-focused platform with $100k+ price points. If Fastly grows say 35% this year, that’s +$70m in bookings, or ~$1.25m per rep (very roughly). It’s also a great one to learn from, at $200m+ ARR ($45.5m

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The Health of Cloud Spending in Mid-2022

Tom Tunguz

Microsoft Azure may have more customers under fixed contracts compared to Google, which may have more customers on a usage-based pricing model. UBP spend fluctuates by the month and introduces more volatility into bookings. I bet it’s some combination of the three. Regardless, Amazon’s data will break the tie Thursday.

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Why Can’t SaaS Companies Just Mint Cash?

SaaStr

Some are still burning far more than their new bookings, which is very, very risky these days. Does it cost so, so much to host a few million lines of code on AWS? As soon as your competitor cuts prices and quintuples their marketing budget … and is everywhere … can you stay out of the arms race? So is SaaS cursed?

Scale 300
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The 7 Factors to Consider When Pricing Your Startup's Product

Tom Tunguz

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

Pricing 124