In this episode of SaaS Therapy, Todd Kirk and Casey Trujillo welcome Bill Wilson, a B2B pricing strategist, to discuss the intricacies of pricing strategies in SaaS businesses. Bill shares his journey from software engineering to pricing strategy, emphasizing the importance of understanding customer needs and the dynamics of pricing within organizations. He outlines a four-step approach to pricing, discusses the significance of customer conversations, and provides insights on when to adjust pricing strategies. The conversation also touches on the importance of aligning pricing with product positioning and handling annual price increases effectively. Bill concludes with actionable homework for listeners to improve their pricing strategies.
Takeaways
- Bill Wilson has nearly 30 years of experience in software and pricing strategy.
- Pricing is a complex issue that affects multiple departments within an organization.
- A common language around pricing can help reduce internal tension.
- The four-step approach to pricing includes discovery, design, pricing, and validation.
- Understanding customer needs is crucial for effective pricing strategies.
- Value dilution occurs when too many features are included in a package.
- Customers want to feel they are getting value for their money.
- Annual price increases should be communicated effectively to customers.
- Free offerings can serve as a powerful acquisition channel.
- Positioning and messaging should align with pricing strategies.
Contents00:00 Intro
1:04 Bill Wilson's Journey in Pricing Strategy
2:28 Understanding Pricing Dynamics in Organizations
6:11 The Four-Step Pricing Approach
11:29 Recognizing When to Adjust Pricing Strategies
15:14 The Importance of Customer Conversations
16:50 Navigating Customer Feedback for Pricing
20:42 Rapid Fire Pricing Questions
27:49 Influences and Resources in Pricing Strategy
31:30 Aligning Pricing with Product Positioning
37:29 Handling Annual Price Increases
41:58 Final Thoughts and Homework Assignment
Resources
Connect with Casey
Connect with Todd
Visit the show page
Get to know BrainStorm
Credits
Show direction: Debra Wilson
Show design: Kensie Smith
Show manager: Jenna Mollinet
