Build a better packaging graph to match against price

Too much discounting? Customers complaining your product is too expensive? Maybe it’s a list price problem, but I’ll bet some money you have a packaging problem too. Don’t build and sell the Cadillac if your customer just wants a Chevrolet. Here’s an easy graph to build of your current or future capabilities to get aContinue reading “Build a better packaging graph to match against price”

You’re not running enough pricing tests

Pricing health should not be a one-off exercise for B2B SaaS companies. Sadly, too many treat it as an afterthought until you need to launch a new product or hear that “the pricing and packaging model is broken.” So it’s pretty clear – run more pricing tests. People have strong opinions about the price. CapturingContinue reading “You’re not running enough pricing tests”

What is a software platform and why does it matter for pricing & packaging?

Platform, platform, platform feels like the modern day equivalent to Marcia, Marcia, Marcia. It’s all anyone talks about in enterprise software, and strangely few people have a good hold on why it’s different from the old model and quite valuable. The least nuanced definition of a platform is that it is the 1s and 0sContinue reading “What is a software platform and why does it matter for pricing & packaging?”

What a pricing page should be

A good pricing page should be… Transparent on the list price – If you’re embarrassed about your list price either your pricing team is lazy, sales people are lazy, or your product team is building anything that sticks without a clear vision Clear on what is included in each package and why each feature isContinue reading “What a pricing page should be”

Snowflake Packaging & Pricing (part 2)

I think it’s a reasonable guess that most enterprise software companies in the IaaS, PaaS, and SaaS space have had a conversation about consumption pricing in the last 2 years. Despite being all the rage, it’s clearly a fit for Snowflake’s business model and this post will explore how it works. The definition of consumptionContinue reading “Snowflake Packaging & Pricing (part 2)”

Snowflake Packaging & Pricing (part 1)

Pricing & packaging is one of the hardest parts of a company’s business model to sustain. Let’s look at how Snowflake does it. Packaging Snowflake has 4 editions: Standard, Enterprise, Business Critical, and Virtual Private Snowflake To make your packaging work at different price points, always make sure that the features are different enough inContinue reading “Snowflake Packaging & Pricing (part 1)”

What’s with Snowflake?

Dominating the news today is that Snowflake’s IPO is the largest tech stock in history raising $3.4 billion. As I’m writing this, some analysts are even predicting that the stock may double in price as soon as retail traders are allowed to buy. What does Snowflake do and what can we learn about its pricingContinue reading “What’s with Snowflake?”

My favorite pricing resources

The best starting point is “Confessions of the Pricing Man: how price affects everything,” by Hermann Simon. If you want to learn how to do practical pricing strategy, this is is the book to read first. Other personal favorites – which have pricing as a consistent thread – include: MoneyStuff (a BloombergView Opinion column) byContinue reading “My favorite pricing resources”