B2B SaaS pricing: How to stop guessing - ClassroomX at Web Summit

Having founded three businesses, the speaker reveals the historical challenge of pricing decisions, emphasizing that it was often perplexing for founders and executives. The common struggle was determining whether to increase prices, especially after introducing new features or innovations. After selling their last business, the speaker delves into the journey that led them to angel investing and eventually specializing in pricing consultancy. They have assisted various VC funds, primarily in Scandinavia and Germany, in guiding their portfolio companies on effective pricing strategies. The primary insight the speaker shares is the misconception many businesses have about pricing. They argue that businesses often attempt to determine the value of their product or service and then slap a price tag on it, but this approach is flawed. The speaker suggests that the correct unit of analysis for pricing should be the customer, not the product. To illustrate this point, the speaker draws parallels between pricing software and historical examples such as train tickets. They stress the importance of pricing based on customer segments rather than features, encouraging businesses to tailor their pricing to different customer groups. The speaker introduces the idea of designing pricing models based on customer expectations and preferences. They advocate for testing and adapting pricing strategies in collaboration with customers, ensuring that the pricing structure aligns with the perceived value and fairness from the customer's perspective.