Close deals and price right
Pricing and packaging
What to charge, what to charge for, how to package it, and how to change it later without losing people.
I have no idea what to charge. How do I pick a first price?
Find the right order of magnitude first and stop arguing about the exact number. Are you a ten dollar product, a hundred dollar product, a thousand...
What is a value metric and why does everyone say it matters more than the number?
A value metric is the thing you charge for: a seat, a thousand API calls, a gigabyte, a transaction, a resolved ticket. Patrick Campbell's line is ...
How do I design tiers so buyers pick the right plan and grow into the next one?
Good, better, best works for about two thirds of SaaS companies because it makes the choice easy, so start there unless you have a strong reason no...
How do I find out what customers will actually pay without just asking them?
Asking "what would you pay" gets you a polite fiction, so use structured methods instead. Van Westendorp gives you a sensible range, Gabor-Granger ...
Should I price in rupees for India and dollars for everyone else?
If you sell to Indian SMEs, price in rupees, include GST in the displayed number, and support UPI and domestic cards, because dollar pricing on a c...
Buyers always ask for a discount. How much do I give, and how do I stop it eating my ARR?
Assume discounting will happen and price for it rather than trying to hold an imaginary line. Jason Lemkin's practical version: mark list up so a s...
How do the best companies raise prices without losing customers?
They change price alongside a visible change in value, they tell people early, and they stage it. Grandfather existing customers for a defined peri...
AI is breaking per-seat pricing. What are the best companies charging for now?
The direction of travel is away from seats and towards usage and outcomes, because when software does the work, charging per human is charging for ...
Free trial, freemium, or demo first? How do I pick which door people come through?
Let the deal size and the product decide, not fashion. If someone can get real value alone in one sitting, a trial works and a sales call is an exp...
Should I bill monthly or annually when I am small and every rupee of runway counts?
Annual, upfront, and price it so annual is obviously the better deal. Twelve months of cash on day one is the cheapest funding you will ever raise,...
How does usage-based pricing actually work in practice, and should I move to it?
Almost nobody runs pure pay as you go, and you probably should not either. What actually works is hybrid: a platform fee that gives you predictable...
I want to raise prices. What happens to the customers who are already paying me, and should I grandfather them?
Start with new customers only. It costs you nothing, it tests the new price in the market for a quarter or two, and it means your first price rise ...
A reseller wants to carry us. How do I build a price book for partners without my own sales team undercutting them?
Write two things down before you sign anyone. First, the rules of engagement: which accounts, segments and geographies belong to the channel and wh...
Should I sign multi-year deals, and what payment terms should I be pushing for?
A multi-year deal is worth real money to you (locked revenue, no renewal risk, lower churn) so charge for it properly rather than giving it away. T...
How do the best companies run pricing as a standing function instead of an argument they have once a year?
They put someone's name on it, give it a cadence, and feed it real data. Pricing used to hold for eighteen months and now it can be stale in six, s...
My AI features cost real money every time someone uses them. How do I stop gross margin from collapsing?
Accept the new baseline first: AI native products are running somewhere near 50 to 65 percent gross margin, not the 80 to 90 percent that defined t...