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Willingness to Pay: It's More Complicated Than You Think

Forbes: Amid Turmoil, Software Leaders Must Rethink Their Pricing Assumptions

Published: October 25, 2023 | By Chris Mele |

SaaS Pricing in Times of Turmoil

To read the original Forbes article, click here.

SaaS Pricing: Validating Your Assumptions

In times of turmoil, many of the software company’s clients change their behavior: implementing hiring freezes, protecting cashflow or other defensive moves. THis can result in downgrades or canceled subscriptions.

This story has played out time and time again in the software industry. In every market, there are moments of turmoil. We typically associate turmoil with economic factors, namely inflation and recessions, but it can have a plethora of other underpinnings, such as new regulations, disruptive technological advancements and political instability. These distractions can cause business to slow down or stop for software companies.

Yet, software executives should not view turmoil fatalistically. While turmoil can cause losses, it can also create opportunities for software companies—if navigated correctly.

Quieter times allow software companies to revisit what is arguably the most critical element to their success: their pricing.

Quick Forbes Article Summary

In this month’s Forbes column, we cover:

  • Avoiding drastic pricing changes.
  • How to validate pricing assumptions that underpin the company’s overall pricing approach.
  • Using services creatively to differentiate existing and new offers.
  • How to better isolate your “secret sauce” (IP) and get paid fairly for it.

You can read our full article on Forbes: Amid Turmoil, Software Leaders Must Rethink Their Pricing Assumptions

 

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Chris Mele

About The Author Chris Mele

Chris is Managing Partner for Software Pricing Partners, where he and his team have launched some of the software industry’s most transformative monetization strategies. As a former software company founder and leader, Chris focuses on the impact effective licensing, packaging and pricing strategies can make on the most essential software company metrics: revenue, profit and valuation. Under his leadership, Software Pricing Partners has become an influential voice for growth-oriented software companies both large and small.

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