THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Costs do not justify SaaS price increases - value does
SaaStr recently had a series of interesting posts on pricing. One of them tells the story of a new CRO justifying price increases because of higher costs. Is this ever a good move for a SaaS company?
Differential Diagnosis of Pricing Symptoms for Churn
Many companies start worrying about pricing when they encounter a symptom that they associate with a pricing problem. A classic example is churn. But pricing is only one of the possible causes of churn. Trying to fix churn by changing pricing will only work in certain circumstances.
The OG of Retention Metrics: Why GRR Still Matters
Gross Retention Rate (GRR) remains vital in the realm of SaaS metrics. Not only does it offers a clear insight into customer value and satisfaction, alongside Net Revenue Retention (NRR), but it serves as a crucial pillar for achieving long-term, sustainable growth. Track this metric religiously, integrate it as a KPI, and allocate resources wisely to enhance your gross retention trajectory over time.
What is driving your Net Revenue Retention (NRR)? Poll Results
NRR is the critical metric for SaaS companies and measures the organic growth from within the customer base. There are different ways to drive NRR: reduce churn, grow revenue with current customers and discourage revenue shrinkage. As we near the end of Q1 2024, what are SaaS companies prioritizing?
The Psychology of Pricing: The Power of Fairness
One of the factors that determines willingness to pay (WTP) is perceived fairness. In this post Edward Wong looks into what companies need to do to make there their pricing is seen as fair.
Should you include a price increase rider? - Poll Results
Should B2B SaaS contracts include automatic price increase? Ibbaka shares poll results and gives some guidance on if and when to include such a clause.
Navigating Price Adjustments: When to Raise Prices Amid Rising Costs
Are you facing the age-old question: Should you raise prices when your costs go up? Dive into our latest blog where we embark on a thrilling journey through the world of pricing dynamics and cost management. Join us as we unravel the mysteries of sunk costs, variable expenses, and the delicate dance of pricing strategies in the SaaS world.
PeakSpan Master Class: Optimize Pricing & Packaging to Minimize Churn led by Karen Chiang & Steven Forth
Churn sucks the life out of SaaS business models. In this PeakSpan Masterclass Karen Chiang and Steven Forth will diagnose the root causes of churn and how to use packaging and pricing to reduce churn and improve Gross Revenue Retention (GRR).
How is Generative AI Being Applied? - Poll Results
Where are people applying generative AI solutions? Ibbaka conducted a quick linked in poll to explore this. Here are the results. Not surprisingly, improving internal business processes is the most common use of generative AI today.
SaaS Valuation and Early Exits: An Interview with David Rowat of Strategic Exits
When should you sell your SaaS business? What will determine the value? How important is Net Revenue Retention? How is AI and generative AI changing the environment? Get insights from David Rowat of Strategic Exits.
Deconstructing SaaS discounting
Discounting is a fact of life in B2B SaaS. If you are going to discount, how should you do so? A fine grained approach can pay big dividends. First unpack discount to reflect the structure of your offer. Then repackage discounts to align with your business strategy and how you negotiate.
AI Pricing: What does Box AI tell us about AI pricing trends?
The layering in of AI has led Box to adjust its pricing. What can we learn from this that will help us to price other AI powered solutions?
What to price? Products, Use Cases, Value Paths - Poll Results
Our thoughts on what to price, products, use cases or value paths seem to have struck a nerve. We did a LinkedIn poll on this theme and got more than 300 responses in 24 hours. Pricing of value paths is much more common than we expected.
What to price? Products, Use Cases, Value Paths
Pricing is often divided into product pricing or services pricing. This is too simple an approach for companies that provide solutions to complex problems. Use cases and value paths can be a more compelling approach to pricing for companies that do more than sell a simple well defined product.
Questions to ask before hiring a pricing consultant
When and how do you hire a pricing consultant? Pricing consultants have the power to streamline your pricing strategies and enhance profits, yet they may also complicate matters with too much analysis. This article offers crucial advice on when and how to choose a pricing expert wisely.
Price It Right: Value over Time shapes pricing
Dive into the intricacies of customer value delivery over time, and discover actionable strategies to ensure your pricing aligns with evolving customer needs. Explore practical guidance aimed at crafting pricing strategies that capture value and drive success, from prioritizing services to comprehending value evolution and cost dynamics.
Pricing and Planning: 3 Approaches to Discounting
Discounting is a persistent challenge in B2B SaaS. That is not likely to change as there are good reasons to discount. Here we consider three ways that discounts can change over time.
AI Pricing: Will the popularity of RAGs change how we price AI?
RAGs or Retrieval Augmented Generation archiectures are becoming a common approach to the design generative AI. They tend to require more context in the prompt changing the cost dynamics. How will this impact their pricing?
Interview with Dick Sobel on Pricing Acuity
We had the pleasure of speaking with Dick Sobel, a seasoned professional in the field of pricing, as he shared his journey from the mid-90s to PricePoint Partners. Dick delves into the intricacies of pricing Acuity and sheds light on its applications in the market. Join us as we explore his perspectives on the evolving landscape of pricing, the impact of AI, and advice for those considering a career in this dynamic field.
AI Pricing: Operating Costs will play a big role in pricing AI functionality
SaaS vendors are used to high operating margins where costs are a minor consideration in pricing. AI is changing this. AI is expensive to develop and to operate. Will this change pricing models?
Never miss an update
Subscribe to the Value & Pricing Newsletter to get insights that help you supercharge your growth.