in Podcast, Pricing, Startup Basics, Strategy, Video

Pricing Strategy for B2B & B2C SaaS startups

#StartupBasics | Series by Insights Alley (Hosted by Arun Verma)

S01E06 – Pricing Strategy for B2B & B2C SaaS startups

Guest: Patrick Campbell, Co-Founder & CEO at ProfitWell


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In this episode of #StartupBasics, we discussed:

– The Story of Patrick from his early days to Price Intelligently & now ProfitWell.

– Importance of Pricing strategy in your business.

– Free Trial vs Freemium
Freemium is not a Revenue Model, it is instead an acquisition method.

– What type of Pricing strategies are there? Problems with them & which is the best strategy?

  • Cost+Markup
  • Competitive Benchmarking
  • Value Metric based pricing

– How to find the Value Metric?

  • We are able to measure value now that we are creating for our users like we were not able to do 10 years ago.
  • Thinking of value metric in very basic fundamental things.
  • How to find your value metric – Step by step process, with an example for a CRM.

– How to find the exact price point in early-days?

  • Understand that human beings think of value on a spectrum.
  • What questions to ask to find out the right initial price point?

– How to update pricing?

  • Pricing complexity & how often?
  • Your price is the exchange rate on the value you are providing to your customers.
  • Probably you are not great at pricing right now.
  • Treat pricing as the growth lever as it deserves to be treated as.

– What to do with old customers with old pricing?
What not to do? and what to do?

– About One-time fee, Add-on and service fee from your customers.

– How to make kick-ass pricing page?

  • Think in terms of user persona that come on your page.
  • Align everything based on the different buckets of different personas
  • Self-serve vs Contact Sales: Understand the unit economics of each plan/persona pairing.

– Pricing Localization: How to do it? with examples

– What to test and optimize in your pricing strategy?

  • Don’t A/B test your pricing, unless you are Amazon.
  • The pricing strategy of Drift vs Intercom

– What to test and optimize in your pricing strategy?

– Reflecting brand in your pricing

– How to start now when you did not any of this stuff from starting?

– Pricing of ProfitWell itself

– Pricing is a Process, not a magic bullet.


Resources mentioned:


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