The Tuesday Roundup
For today’s Tuesday newsletter, I’m rounding up some of my favorite resources on pricing strategy. These should deepen your understanding of pricing and add some context to last week’s newsletter.
You don’t need to reinvent the wheel when creating your pricing model. This article from Cobloom lays out the 7 main pricing models and the pros and cons of each. You can use this to evaluate which model is right for you.
Your pricing model is at the heart of your SaaS business: it's the foundation that allows you to build out repeatable sales processes and generate recurring revenue.
Selecting your pricing strategy should be an intentional process. This article from Atlassian lays out 8 principles to drive your choices. The core belief underlying each principle is that the customer should come first — this is important to remember as you embark on your pricing journey.
From our early renewals to transparent prices to lower costs in market downturns, the one constant is that we value our customers first and foremost. After all, this whole pricing journey started with a guesstimate on what seemed reasonable and inexpensive for everyone. Nothing was written in stone – just a stone-cold punt towards fairness.
Once you’re ready to choose a strategy, consult this guide from Pricing Intelligently. This is an exhaustive summary of all the components of pricing strategy. It’ll take you through why pricing strategy matters, why value-based pricing is the best approach, and more.
SaaS products provide unique opportunities to optimize pricing because there are almost limitless possibilities. This resource from SaaStr focuses on how to take advantage of this freedom. It offers lots of great insights into how to continuously improve your pricing once you’ve developed a strategy.
I hope these resources help you adopt a strategic approach to pricing. Let me know what you thought of this newsletter here on Substack or on Twitter (@sotulana).
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