There is an unspoken discount that most SaaS companies are faced with. This is the risk discount. Buyers are not sure if your product will deliver the value you claim it will, and that they hope it will, so they levy a risk discount. One way to improve your pricing power and increase your price is to reduce this perceived risk.
There is wide agreement that differentiation is critical to effective pricing, but what is differentiation and how do you create it? Enhance an existing value driver. Create a new value driver. Find a new market for your existing or new value drivers. In this post we look at the three basic ways you can develop differentiation for your offer and what these imply for your product and pricing strategy.
Pricing excellence requires organizational alignment on pricing. Corporate culture plays an important role in this. It is critical that finance, operations, product development, product marketing and especially sales are aligned on pricing success. Without alignment, it is difficult to execute on adaptive pricing.