SaaStr

MARCH 23, 2024

Dear SaaStr: Why Do Most Entrepreneurs Under Price Their Offerings Initially? Yes, most of us at first under-price and then slowly raise prices as we gain confidence. The post Dear SaaStr: Why Do Most Entrepreneurs Under Price Their Offerings Initially? But maybe not in the beginning. appeared first on SaaStr.

Pricing 287

Pricing Sales Revenue 287

SaaStr

NOVEMBER 10, 2022

The post We’re All Paying the Price Now for Massive Overhiring appeared first on SaaStr. And all of this will surface a ton of inefficiency that grew up in tech and SaaS and Cloud in 2021 and early 2022. That’s leading to a lot of pain, even at the best of the best.

Sales Hiring 322

Sales Hiring Pricing Cloud Startup 322

SaaStr

MARCH 5, 2024

Dear SaaStr: What’s the #1 Most Important Thing in Pricing A New SaaS Product? Most first-time SaaS CEOs price too low and don’t drive ACVs up quickly enough because they don’t quite yet understand the context of the product. More here: The 3 Types of Day 1 Pricing: Low End of Normal. At least annually.

Pricing 265

Pricing SaaS Software 265

SaaStr

MARCH 19, 2024

And only 1/3 of these have an exit for 3x-10x the price of the last round, i.e. enough for anyone to make any money. The post What Are The Odds You Get Acquired Within 5 Years for a Good Price? What’s less clear is how many were acqui-hires or acquisitions for a very small amount. So my educated guess from this data: 1%-1.5%

Pricing 323

Pricing Acquisition Startup Education 323

SaaStr

MARCH 8, 2024

With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products. Why is pricing so tricky?

AI 259

AI Artificial Intelligence Pricing SaaS 259

SaaStr

AUGUST 26, 2022

Series B and later prices are down across the board from their peaks in 2021 and Q1’22, down 30% or more. Fenwick’s blended numbers see overall Series B and later round pricing down about 30%. #3. But overall, valuations and prices post-Series A still remain way ahead of where they were up until 2018.

Pricing 327

Pricing Social Media B2C Startup 327

SaaStr

MARCH 26, 2024

In it, we cover the SaaS community’s most pressing questions about Artificial Intelligence (AI), pricing, efficiency, and funding. Today, folks seem to be launching fewer features, ratcheting prices, and digging into the existing customer base. “If When you’re mature, raising prices by $1 might make sense.

AI 298

AI Pricing Artificial Intelligence Scale 298

Tom Tunguz

JULY 11, 2024

3x as productive as humans, which would parallel mechanical robots, how does a software company price? Building on yesterday’s post , pricing in software companies may change significantly when AI agents become the norm. This would be a significant increase in price, but the value of the software would be much higher.

AI 229

AI Pricing Software Compensation 229

Tom Tunguz

JULY 10, 2024

Pricing an AI product will be a defining question in software for the next few years. We can observe the market trends today across some of the larger SaaS companies who offer AI pricing. Company Product Base Price AI Price Ratio Github Github Enterprise 21 10 0.67 AI products offer productivity gains.

AI 223

AI Pricing Sales Hiring Strategy 223

SaaStr

SEPTEMBER 15, 2024

How to price and package AI SaaS products with Sandhya Hegde at Unusual Ventures Pricing is always a super popular topic and this was a great one from Unusual Ventures on pricing in the AI age. Watch / listen and you will do better in GTM. I guarantee it. #5.

AI 320

AI Pricing Scale Scaling 320

SaaStr

DECEMBER 15, 2024

How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk #3. How to Train Your Sales Leaders with Michelle Benfer, ex-CRO Bill and HubSpot The post Top SaaStr Posts and Vids of the Week: GitHub’s CRO, OpenAI on Pricing, A16Z on AI in SaaS, and More! appeared first on SaaStr.

AI 250

AI Sales Hiring Pricing Scale 250

SaaStr

JULY 1, 2024

Generally speaking, there are two paradigms: Buy them out at Common Stock price (which is what they in fact own), based on the lastest option pricing. And they can figure out the price and discount. The post Dear SaaStr: If You Want to Buy Shares from a Founder That Has Left the Company, What Price Do You Use?

Pricing 282

Pricing Investment Leadership Strategy 282

SaaStr

MARCH 29, 2024

The post Can You Still Get Acquired for a Decent Price if Growth Has Slowed or Even Stopped? But even if you’re out of ideas for now, don’t give up all hope of a potentially decent M&A offer, especially if you are cash-flow neutral and haven’t raised too much (that’s important).

Pricing 294

Pricing Scale Startup Acquisition 294

SaaStr

DECEMBER 21, 2024

Dear SaaStr: When and how should SaaS startups offer reduced pricing vs the competition? For most SaaS apps, you want to at least start with just right, Goldilocks pricing: #1. Too high a price, and you start to add friction to the sales process. The answer is simple: mark up your pricing equal to the average discount.

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SaaStr

MAY 10, 2024

At this week’s Workshop Wednesday, Lucas Price, former SVP of Sales at Zipwhip and founder and CEO at Yardstick, shares his insights on how to hire and build a high-performing sales team. When he joined Zipwhip, they were at a quarter million in ARR, and he took the sales team to over $100M before it sold to Twilio for almost $850M.

Sales Hiring 241

Sales Hiring Scale Sales Interviewing 241

SaaStr

OCTOBER 25, 2024

8: 3x Net Dollar Retention Thanks to This Pricing Model Over time, the dominant pricing structure in B2C and B2B applications is like the cell phone plan. You get a base number of minutes for a particular price. But now there’s been a broad shift toward usage-based pricing or seat-based pricing, or a combination of the two.

Venture Capital 331

Venture Capital Marketing AI SaaS 331

SaaStr

MAY 7, 2024

What I mean what you want is a pricing structure that anticipates discounts so the net effect is revenue positive. Later, when you implement a CPQ and other more sophisticated systems to manage pricing for a large sales team, these processes and systems will be designed to help you do just that, at least in part.

Pricing 284

Pricing Churn Enterprise Branding 284

SaaStr

JUNE 29, 2023

As buyers grapple with expanding technology, higher prices, and a need for efficiency, SaaS companies need to deliver what their audience is looking for to win in the market. The Year of the Price Hike In 2023, companies face a hard reality –– SaaS prices are rising. Why are SaaS Prices Increasing? weakest link.

VP of Engineering 294

VP of Engineering Trends Cybersecurity Sales Hiring 294

SaaStr

JUNE 27, 2022

Not only were the prices basically identical, but so were a few other facts: Both had a nice, roughly similar premium price (usually necessary to get a deal done to acquire a public company): Anaplan a 41% premium to their trade price, and Zendesk 34%. You can’t argue that when they paid 40% higher than the public share price.

Acquisition 338

Acquisition SaaS Pricing Revenue 338

SaaStr

SEPTEMBER 14, 2024

Pricing “cheap” won’t get prospects to come find you, not usually. And raise pricing further. So lower pricing can work. More here: The 3 Types of Day 1 Pricing: Low End of Normal. Yes, to some extent — once a category is well established and there is a subset of functionality that is commoditized.

Scale 312

Scale Pricing Branding B2B 312

SaaStr

MARCH 22, 2024

And on a related note, Redpoint data shows that the hottest late-stage “AI” deals are getting done at 3x the price of non-AI deals. We knew that, too, but helpful to see it clearly here: But, while AI deals are priced at 3x “normal” growth rounds — investors are looking for 2.5x the growth.

AI 347

AI Pricing Investment Data 347

SaaStr

NOVEMBER 1, 2024

And that includes pricing. One caveat: if your product requires significant onboarding and business process change, monthly pricing sometimes just doesn’t work. Be flexible in the beginning at least. Once you have a brand that customers trust, more will prepay annually.

Payment Features 262

Payment Features SaaS Churn Pricing 262

SaaStr

JUNE 21, 2023

Another common pitfall to watch out for is executive recruiters sending along candidates who are out of your price range. Lesson #7: Pricing Has No Right Answer “Pricing can be a total time suck because there’s no right answer,” Harbaugh says. There is no right answer to pricing. A good recruiter is worth it.

Sales Recruiting 295

Sales Recruiting Sales Hiring Underperforming Technical Team Pricing 295

SaaStr

NOVEMBER 8, 2024

AI SDRs have taken off more quickly than AI AEs (although personally, I suspect more value will be in AI SEs and AEs that can answer my deep product and pricing questions instantly, without games). But what about the more personal sales side? But is it working yet, these AI SDRs?

AI 327

AI B2B Engineering Customer Support 327

SaaStr

APRIL 17, 2024

Up to 8,000,000 More Shares to Founder CEO if Stock Price Hits Targets This is becoming more and more common, everyone from Squarespace to Tesla has done more and more of stock price-based grants to incent founder CEOs especially to grow the price higher than the IPO or current public price. shares currently, 7.6%

Scale 294

Scale Pricing Scaling Cloud 294

SaaStr

NOVEMBER 6, 2024

Seat Expansion Driving Growth, Along with Cross-Sell of New Products Long live per-seat models and pricing! A Big AI Push, But Being Very Conservative on Consumption Pricing For now, Atlassian is sticking mainly to per-seat pricing. It’s split 50/50 at Atlassian. #5. And a few other interesting leanings: #6. $10k+

Enterprise 285

Enterprise Pricing AI Cloud 285

Tom Tunguz

JANUARY 4, 2022

Deltas between the figures provide insight into which sectors' tokens investors price at relatively elevated multiples. In reality, the markets are still so new, valuation mechanisms so novel, and price swings driven by social signals that it’s spurious to apply this way of thinking to an embryonic market. revenue share but 1.7%

Payments 363

Payments Revenue Payment Solutions Blockchain 363

SaaStr

NOVEMBER 6, 2024

Has Pricing Really Changed? Or are clever pricing models worth the friction? Dave answers: “Unless your business plan is predicated on price model disruption, do what everybody else does.” ” The problem with AI right now is those pricing standards are not yet set. ” So that’s the dynamic.

Headcount 263

Headcount SaaS AI Pricing 263

SaaStr

JULY 31, 2024

The best sales reps don’t immediately go into discounting and pricing. When you’re talking to a great sales rep, it’s not all about pricing. Arguably, pricing doesn’t matter much as long as it’s mostly transparent and generally fair. 5: They don’t play games with pricing. So, the best reps don’t play games with pricing.

Scale 281

Scale Sales Pricing ChatGPT 281

SaaStr

NOVEMBER 13, 2023

To me, the most jarring statistic was this one: 80% of IPOs since 2020 are trading below their IPO price, or “broken ”: So what, you might think? Pricing can fix this, and re-pricing in general is in process all across tech. The best can always IPO, it’s just a question of price. Buyer beware? All A+ companies.

Pricing 309

Pricing Startup Investment Data 309