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