Most Important Pricing Strategy Advice

Requests for Advice 

Candidly, as there are so few software pricing consultants with my scope of real-world experience ... I get to have a lot of conversations about the issues, challenges and regrets that tech founders, executives and investors face.

Because there are so many factors, variables, conditions and scenarios to consider when making better-informed monetization and pricing strategy decisions ... it is common for these conversations to close with the following question.

QUESTION
What is your #1 piece of advice for how a Software and SaaS business should think about pricing?
 
ANSWER
Give your pricing a chance.

Setup Your Pricing   
The best way to "give your pricing a chance" ... is to continuously test and fine-tune new ways to better setup your pricing, with improved value messaging at every touchpoint.
 
It is common for leaders to conclude or suspect that pricing is the cause for low (or decreasing) conversions, wins or renewals.  They may even reference verbatims from prospects, customers or sales staff as proof that pricing is too high or that a discount is necessary.
 
Remember 
It's not the price they don't like, but what they understand they are (or are not) getting for that price.

Key Questions
Here are the most important questions to be asking and answering often:

Q1:  How well are you setting up your pricing?
 
Q2:  If someone asked, how would you explain your pricing?
 
Q3:  Are you making a compelling and credible value case for why your pricing makes sense?
 
Q4:  Are you giving your value advantages the best chance to differentiate you from alternatives?
 
Q5:  If you and your team do not believe in your pricing, why would your prospects and customers?
 
Value Clarity = Pricing Confidence
As you increase value clarity, you simultaneously increase pricing confidence in the minds of ….

• yourself
• your sales team
• your entire organization
• your prospects
• your customers

 
The better you MAKE A CASE FOR YOUR VALUE, the better you make a case for your pricing.
 
The most common reason … prospects do not choose you -or- customers leave you … is they do not believe you are worth it.
 
Top Priority Recommendation 
One of the best (most effective) ways to understand, demonstrate and communicate value … is to contrast LIFE WITHOUT -vs- LIFE WITH your solution.
 
The single most important and productive investment of your time is to get the right people in the same room and on the same page regarding how you make a meaningful and measurable difference in the lives of your customers. 

Simply start with two columns on a whiteboard;
    (a) Life Without - Status Quo
    (b) Life With - Your Solution 

Be honest and realistic with how you actually help them save money, make money, save time, increase quality, avoid risk, achieve compliance, etc.

Do This Next 
Use the above LWO-LW and map it to: Bain's, "The 30 Elements of Value" (B2C), "The B2B Elements of Value" or Christensen's, "Jobs To Be Done". 

• I created a simple tool to help you get started [ today ] making meaningful progress.
  • Download the B2B version here
  • Download the B2C version here

Reminders

• Your pricing determines both your revenue and your profits.  Get paid what you are worth.
• Ultimately (and literally) ... you are worth ... the prices you accept. 
• It is easy to book a Strategy Session here.​

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LWO-LW Example
Below is a quick example of how Logikcull presents a well-designed Value Visual of Life Without (Old Way) and Life With (New Way) the capabilities Logikcull enables for its customers. ​

Here are a few more examples ... 

Here is one more example ... 

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