Street Pricing with Marcos Rivera

Pricing I/O

Book: Street Pricing

Email Street Pricing for a consultation

The Dark Side to Simple | Peter Bonney (FastbreakRFP)

Marcos Rivera — Tue, 25 Feb 2025 13:00:00 +0000

Why did Peter Bonney decide to pivot from usage-based pricing to a flat, user-based model, and how has this shift impacted Fastbreak RFP's growth and customer satisfaction?

Join me for a candid conversation with Peter, who's transforming how enterprises handle RFPs (Requests for Proposals) through intelligent pricing architecture. After seeing enterprises struggle with opaque, usage-based pricing models in the RFP space, Peter built Fastbreak RFP to introduce predictable, user-based pricing that scales with customer success.

We unpack key insights into RFP pricing models, including:

- The hidden costs and challenges of usage-based pricing in RFP software

- How the shift from usage-based to user-based pricing impacts customer retention

- Real-world examples of simplifying compliance workflows through pricing structure

Peter shares his framework for building pricing tiers that align with procurement workflows, demonstrating how Fastbreak RFP reduced sales friction through transparent pricing architecture. For pricing leaders wrestling with the complexity of enterprise RFP solutions, Peter reveals his playbook for packaging AI capabilities without creating pricing anxiety.

Whether you're rethinking your pricing strategy or seeking insights on monetizing AI features in enterprise software, this discussion offers actionable frameworks for modern SaaS pricing architecture in complex markets.

In this episode:

(00:00) Introduction of Peter Bonney, Founder and CEO of Fastbreak RFP

(03:46) Rewind story, Peter's entrepreneurial journey and evolution of Fastbreak’s pricing strategies, the chaotic nature of enterprise RFPs and Fastbreak RFP's automation solutions

(16:21) Resolving pricing misalignment, pricing models in AI-driven businesses and the transition from usage-based to user-based pricing

(20:41) Challenges in simplifying pricing models for large companies and the benefits of tiered seat models, transitioning to user-based pricing for clarity and predictability

(26:00) Future of pricing models, leveraging AI for “magical” RFP responses and CRM integrations to create tailored responses

(31:05) Closing remarks, favorite jam by Living Colour

Resources:
Peter Bonney LinkedIn

Fastbreak RFP

Marcos Rivera LinkedIn

Pricing I/O

Book: Street Pricing

Email Street Pricing for a consultation

Top Pricing Recommendations for 2025 | The Pricing I/O Experts

Marcos Rivera — Tue, 11 Feb 2025 10:00:00 +0000

How can SaaS companies benefit from the seasoned insights of the Pricing I/O team to navigate complex market dynamics and achieve pricing excellence?

Today I’m speaking with Peter Cohen, Steve Inman, Mario Pereda, Emily Sanz and Amit Saraf - a special lineup of pricing experts from the Pricing I/O team. These experts have vast knowledge across various industries like airlines, freight transportation, and tech. Each of my talented colleagues shares their unique insights into the art of pricing. We engage in a dynamic roundtable discussion, unraveling the intricacies of delivering just the right amount of value without overextending, a vital strategy for maximizing utility in SaaS pricing. Our conversation reveals how to effectively capture value and tackle the complexities of pricing across different sectors, guiding SaaS companies toward optimal pricing models.

The discussion begins with a deep dive into why software packaging deserves more attention than pricing itself, with the team advocating for an 80/20 split in favor of packaging considerations. They explore why providing the right amount of value, rather than maximizing features, is crucial for customer satisfaction and revenue growth in SaaS businesses.

The conversation then shifts to analyzing Salesforce's recent move to conversation-based pricing for their AI agent service, charging $2 per conversation instead of traditional user-based licensing. The team debates the implications of this shift and whether it would work for smaller companies without Salesforce's data advantages and established customer base. The episode concludes with team members sharing their key advice for SaaS leaders in 2025, including the importance of customer feedback, service differentiation, careful discounting practices, and implementing effective pricing committees.

In this episode:
(00:00) Team Introductions - Pricing I/O team members including Peter Cohen, Steve Inman, Mario Pereda, Emily Sanz and Amit Saraf - each bringing different pricing expertise across industries

(05:09) “A-ha” moments, packaging vs pricing, why software packaging deserves more attention than pricing levels, with the recommendation to spend 80% of time on packaging and 20% on price points, why giving customers the right amount of value (no more, no less) is crucial for SaaS success

(17:41) Salesforce's move from user-based licensing to charging $2 per conversation for their AI agent, the pros and cons of this pricing strategy and its implications for the industry

(31:38) Team members share their top pricing recommendations for 2025, including:

- Getting customer and employee feedback regularly

- Focusing on services as a differentiator

- Being careful with discounting

- Implementing a pricing committee

(37:16) Closing remarks, favorite jams

Resources:

Peter Cohen LinkedIn: https://www.linkedin.com/in/peter-cohen-8a8b4859/

Steve Inman LinkedIn: https://www.linkedin.com/in/inmansteven/

Mario Pereda LinkedIn: https://www.linkedin.com/in/mario-pereda/

Emily Sanz LinkedIn: https://www.linkedin.com/in/emily-sanz/

Amit Saraf LinkedIn: https://www.linkedin.com/in/amsaraf/

Pricing I/O

Book: Street Pricing

Email Street Pricing for a consultation

Behind Docker's No-Brainer Bundle | David Caughman (Axia Consulting, Docker)

Marcos Rivera — Tue, 28 Jan 2025 09:00:00 +0000

Crushing Competition with Customer Insight | Eric Weiss (Chaos to Clarity)

Marcos Rivera — Tue, 14 Jan 2025 19:45:12 +0000

How can entrepreneurs unlock exponential growth by understanding and leveraging “discovery-led growth” in their pricing strategies?

Today, Street Pricing listeners are treated to Marcos’ discussion with Eric Weiss, CEO of Chaos to Clarity. Eric delves into the intricacies of entrepreneurial growth with an emphasis on understanding customer value. Drawing from his extensive experience, Eric highlights the transformative power of human-centered design through compelling case studies, such as differentiating an email marketing platform in a crowded market. Marcos and Eric also explore how companies can leverage customer feedback to enhance user experience and retention, advocating for a ‘discovery-led growth’ mindset.

Later in the episode, Eric provides valuable insights into the challenges and potential of AI in product development. Incremental integration is key to ensure reliable user experiences. You’ll hear the importance of empathy, strategic design, and continuous learning to achieve product-market fit and unlock market potential. This episode is a must-listen for entrepreneurs seeking to harness innovative strategies for growth and value capture.

In this episode:

(00:00) Guest intro of Eric Weiss, CEO of Chaos to Clarity

(04:10) Rewind story, the importance of customer value as a driver for pricing strategies and growth, free master classes

(15:26) Creating better interfaces, how companies can enhance user experience and retention through customer feedback, simplified onboarding, maintaining a discovery-led approach with continuous customer engagement

(20:43) How you can start your discovery-led growth - talk to your customers! Speak their language, ask the right questions, find the custom solution for them

(29:30) What’s going on today - Delving into the challenges of AI integration, the importance of balancing innovation with consistent user experiences, and avoiding customer churn, AI “Agency” - allowing to take steps for you

(41:37) Know your customer better than they know themselves - empathy in understanding customer needs and crafting elegant solutions, aiming to be the best in the market, value of knowing your customer and being a master in your field

(44:38) Closing remarks, favorite jam from Metallica

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Eric Weiss LinkedIn

Chaos to Clarity

Pricing IO

Book: Street Pricing

Email Street Pricing for a consultation

Getting Real with RevOps | James McKay (VEN)

Marcos Rivera — Tue, 17 Dec 2024 14:06:49 +0000

How did James McKay revolutionize financial services with his "20-minute term sheet" strategy, and why is speed more valuable than cost in today's financial landscape?

James is the CEO of VEN, and he joins me on today’s Street Pricing podcast to navigate the complex world of Revenue Operations (RevOps) and pricing strategies. Together, we chart the course from James' time at Clearco, where he revolutionized financial services with innovative pricing strategies, to his current focus on optimizing RevOps. Learn how the "20-minute term sheet" became a game-changer in providing rapid access to capital and why speed and flexibility are often valued more than the cost itself in financial services. James reveals the challenges of targeting more sophisticated clients and the vital role of clearly articulating a value proposition to overcome cost objections. Delve into tales of adapting pricing and packaging in response to market dynamics. RevOps emerges as the backbone of operational efficiency throughout these transformations.

In this episode:
(00:00) Guest intro of James McKay
(03:34) Rewind story, navigating pricing strategies for growth, "20-minute term sheet" campaign, challenges targeting larger companies, importance of speed and flexibility in financial services
(10:31) Defining revenue operations (‘RevOps’), optimizing for growth, defining a new business category, challenges in raising capital, and the role of RevOps in managing the customer journey
(14:31) RevOps best practices and timing, managing customer interactions, data governance, and infrastructure for companies transitioning to a repeatable sales process
(17:49) Founder-led sales transition complexity and timing, common issues and challenges, CRM data and customer journey mapping, CRM systems must accurately reflect the customer journey, measure funnel metrics, and balance automation with user adoption
(27:46) Managing sensitive data, a RevOps terminology debate
(33:26) Impact of AI on RevOps Professionals, RevOps is crucial for sales strategy, using a pragmatic approach and small improvements for growth
(40:24) Future growth and favorite jams

Resources:
James McKay LinkedIn
VEN
Marcos Rivera LinkedIn
Marcos Rivera X
Pricing IO
Book: Street Pricing
Email Street Pricing for a consultation

Narrative Before the Numbers | Niclas Lilja (Younium)

Marcos Rivera — Wed, 04 Dec 2024 20:44:00 +0000

How can defining an ideal customer profile (ICP) transform your SaaS pricing strategy and ensure your product's value is validated by early paying customers?

Niclas Lilja, the visionary Founder and CEO of Younium, shares insights on the evolving dynamics of SaaS pricing strategies. An industry trailblazer, Niclas illuminates his transformative journey from Medius to Younium, and shifting from traditional subscription models to innovative usage-based pricing. We get into the complexities of pricing decisions, looking at the balance between clarity and complexity. Niclas shares his art of iteration, negotiation, and maintaining alignment with customer success.

You’ll hear about defining an ideal customer profile (ICP) and securing early paying customers to validate a product's value and the evolution of defining an ICP over time. We delve into the psychological dynamics entwined with usage-based pricing and its diverse impact on companies of varying sizes.

In this episode:

(00:00) Niclas Lilja, CEO of Younium, shares his journey from Medius to founding Younium, the transition from traditional subscription models to innovative usage-based pricing, and clarity over complexity in pricing decisions

(11:36) Developing an Ideal Customer Profile (ICP) and an effective pricing strategy, securing early paying customers to validate a product's value, refining pricing models is an evolving process that can take years.

(16:59) Niclas’ advice on finding your narrative, crafting fair and simple pricing models, avoiding unexpected fees that can lead to customer dissatisfaction, balancing usage-based pricing with fair value attribution

(23:55) Looking into the future, impact of AI in refining pricing models, uncertainty and perceived security perceived by both sellers and buyers, especially for companies of different sizes, a balanced approach that combines variable and fixed elements to provide a strategic edge while ensuring fairness and transparency in pricing

(32:15) Moving beyond guesswork and focusing on value capture and growth, advice for listeners to apply these insights in their pricing strategies, “be precise to get to the price”!

(34:38) Favorite jam growing up in Stockholm

Resources:
Niclas Lilja LinkedIn
Younium
Marcos Rivera LinkedIn
Marcos Rivera X
Pricing IO
Book: Street Pricing
Email Street Pricing for a consultation

Mastering the Art of Product Bundling | Marcos Rivera (Pricing I/O)

Marcos Rivera — Tue, 19 Nov 2024 15:33:10 +0000

What if your SaaS bundling strategy could do more than just boost immediate sales?

Join me, Marcos Rivera, as I unravel the strategic art of product bundling today on Street Pricing. This episode isn't just about quick wins—it's about leveraging bundling to drive customer adoption and set the stage for future growth. Keeping bundles lean and focused is crucial. Overly complex bundles can lead to sales complications and downsells. Learn the power of strategic bundling, and you’ll learn how to craft combinations that meet a broader spectrum of customer needs.

Major companies like McDonald's and HubSpot effectively use ‘soft bundles’ to offer attractive deals that target specific buyers without compromising value. With the less favored, but sometimes advantageous, hard bundles, it's critical to avoid pairing high-performing products with those that underperform. Tune in to transform your approach to product bundling and drive scalable success in the SaaS industry.

In this episode:

(00:00) Bundling, common misconceptions about bundling, strategic bundling, solving more problems for the customer and paving the way for future sales.

(06:00) While bundles can drive growth, a bundle that’s too large or complex can actually backfire, creating friction during both the sales process and customer renewal periods.

(08:29) How to combine products effectively to create bundles that add value for customers. Solving a sequence of problems, reducing context-switching for users, and creating economies of scale during implementation are key, all while being mindful not to overcomplicate things.

(09:00) The most common types of bundles: ad hoc, framework, soft, and hard bundles. Marcos explains why ad hoc bundling is a mistake and outlines the benefits of using soft bundles, where products are sold together to solve complementary problems. He also shares a strategy for bundle pricing and emphasizes the importance of aligning product use cases and simplifying implementation.

(12:00) Understanding customer use cases and ensuring that bundled products naturally complement each other to enhance value and support sustainable customer retention. Practical tips on avoiding common bundling mistakes and ensuring smooth implementation and onboarding processes.

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Marcos Rivera LinkedIn
Marcos Rivera X
Pricing IO
Book: Street Pricing
Email Street Pricing for a consultation

Price Punch: Pricing Hustle Lessons | Fynn Glover (Schematic)

Marcos Rivera — Tue, 05 Nov 2024 12:00:00 +0000

Are you facing engineering bottlenecks with your pricing systems? Discover how early decisions can impact your SaaS scalability and what you can do about it.

Join me for a game-changing conversation with Fynn Glover, the visionary co-founder and CEO of Schematic. Fynn opens up about his entrepreneurial journey from lifestyle media to B2B SaaS, where he confronted the daunting challenges of scaling a company due to pricing pitfalls. His candid story reveals the pivotal lessons learned from instinct-driven pricing errors and how these hurdles led to the creation of Schematic, a solution dedicated to demystifying complex SaaS pricing structures.

We uncover the critical importance of understanding customer willingness to pay, especially when your business is in its infancy. Through Fynn's experiences and my own, we emphasize the power of engaging potential customers early on—at least 50 conversations deep—to truly gauge market interest. This strategic approach helps mitigate risks and unlocks a product's perceived value. Discover the essential questions that can reveal customer urgency and the external factors influencing purchasing decisions, equipping SaaS founders with actionable insights to build a robust pricing strategy from the outset.

Pricing systems in high-growth companies often face integration challenges, demanding foresight and strategic engineering decisions. We share firsthand experiences where seemingly simple pricing tweaks became major engineering undertakings, highlighting the need for adaptable systems that support swift, impactful business choices. Looking ahead, we explore the evolving landscape of SaaS pricing and packaging, the empowerment of B2B buyers, and the transformative influence of AI on software solutions.

In this episode:
(00:00) Intro and background of Fynn Glover, journey from founding a lifestyle media company to transitioning into B2B SaaS, emphasizing the critical missteps in instinct-driven pricing models that hindered growth and led to the creation of Schematic.

(0:08:19) The importance of understanding customer willingness to pay in the early stages of a business. Fynn advocates for extensive conversations with potential customers to validate market interest and reduce risk, thereby informing effective early-stage strategy development.

(0:15:00) Most common challenges high-growth companies face in managing pricing changes across various system stacks. Fynn illustrates how early engineering decisions can impede scalability and emphasizes the necessity of foresight to avoid costly setbacks, highlighting the often-neglected prioritization of monetization in product development.

(0:25:13) The evolving landscape of SaaS pricing and packaging standards, reflecting on the separation of concerns between business and engineering decisions. As B2B SaaS buyers demand greater flexibility, the role of AI in integrating cost implications into usage-based billing presents an open question for future software and business strategies.

(0:27:30) Reflections on the transformative role of AI in software, underscoring its dual nature as both a tool and a creator.

(0:33:44) Favorite jams - Mark Knopfler

Resources:
Fynn Glover LinkedIn
Schematic
Marcos Rivera LinkedIn
Book: Street Pricing
Email Street Pricing for a consultation

Price Right, Grow Fast: AI and Innovation in SaaS | John Kotowski (PricingSaaS)

Marcos Rivera — Tue, 22 Oct 2024 11:00:00 +0000

Why are 77% of companies hesitant to change their pricing despite inflationary pressures, and what can be done to overcome this fear?

Today I welcome special guest John Kotowski, co-founder of PricingSaaS for an enlightening conversation that unravels the intricate dance of strategic pricing, showcasing how it can be the linchpin driving your company's success. We dissect the challenges and rewards of implementing sophisticated pricing models without relying on a sales team, and examine how meticulous analysis uncovers churn and expansion opportunities. Even subtle pricing adjustments can yield significant revenue gains. Through stories of overcoming complexity and aligning product features with pricing paths, we lay out a pragmatic roadmap to achieving those sought-after revenue targets.

Turning to the future, we turn to the powerful yet complex realm of AI monetization. From companies like Notion and Algolia experimenting with add-ons to outcome-based pricing models, we explore the evolving landscape where AI features are not just enhancements but value propositions in themselves. With a keen focus on experimentation and infrastructure, we highlight the challenges and triumphs of monetizing AI, ensuring you walk away armed with insights to navigate the rapidly shifting sands of SaaS pricing.

In this episode:
(00:00) Intro and background of Pricing SaaS co-founder John Kotowski
(04:05) Managing Complexity in Pricing Strategy - Managing product-led growth strategy, utilizing data analysis, and aligning features with upgrade paths.
(10:26) Master pricing and monetization as a product leader, secure small wins, and progressively make bolder moves for business growth
(15:50) Invest in tooling and infrastructure for successful monetization, exploring pricing strategies and trends, addressing challenges to capture value
(27:14) Excessive discounts can lead to customer challenges. The importance of product stickiness
(31:29) Monetizing AI Features in Pricing – About half of tech companies are experimenting with different pricing models for AI features, including add-ons and outcome-based pricing, while also creating new AI-driven products
(46:09) Favorite jams - Nirvana as a 90s teen

Resources:
John Kotowski LinkedIn
PricingSaaS
Pricing SaaS Benchmark Report
Marcos Rivera LinkedIn
Book: Street Pricing
Email Street Pricing for a consultation

Going Solo to Scale by Raising my Pricing 20X | John T. Meyer (Leadmore)

Marcos Rivera — Tue, 08 Oct 2024 11:00:00 +0000

Want to future-proof your creative business against the ever-evolving landscape of technology and globalization? John T. Meyer dives into the future of creative entrepreneurship and offers actionable advice on niche specialization and leveraging AI.

Marcos engages in a compelling conversation with John, founder of Leadmore, on the nuances of creative entrepreneurship. This episode dives into Meyer's transformative journey from running a successful design agency to coaching creative entrepreneurs. Meyer emphasizes the importance of value-based pricing over effort-based pricing, illustrating how understanding the true worth of creative work can lead to higher revenue and greater client satisfaction. He provides actionable advice on tackling common entrepreneurial challenges, such as managing multiple roles and prioritizing tasks, while highlighting the benefits of leveraging virtual assistants and contractors through his "No More Solo" coaching program. The conversation also explores future trends in creative entrepreneurship, including the impact of technology, globalization, and niche specialization. Meyer shares his vision for helping solopreneurs build scalable, million-dollar businesses and reflects on the influence of music on his entrepreneurial journey.

In this episode:
(00:00) John Meyer shares his journey from creative agency to coaching entrepreneurs on scaling and leveraging with effective pricing strategies.

(11:28) Value in Pricing and Experience - Value in the creative industry: shifting from effort-based to value-based pricing, communicating worth, understanding feedback, and re-bundling services.

(20:05) "No More Solo" program helps entrepreneurs scale their business by delegating tasks and focusing on high-value tasks for growth.

(27:59) Technology, globalization, AI, niche specialization, solopreneurship, and music's influence on our formative years.

(32:43) Favorite jam growing up

(33:52) Words of wisdom, advice, lessons on pricing and growth in coaching, with insights from John's million-dollar agency experiences.

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Solopreneur Scorecard

Leadmore on YT

John T. Meyer LinkedIn

John T. Meyer Coaching

How to Scale Sales with Pricing | Jon Rydberg (Align Advisory Group)

Marcos Rivera — Tue, 24 Sep 2024 11:00:00 +0000

Are freemium models confusing your customers and costing you sales? Find out why Jon Rydberg advocates for guided paid trials over freemium models and how this strategy can significantly boost your software's success.

In our insightful conversation, Jon, the Founder and Principal of Align Advisory Group, takes us through his fascinating journey from VP of Sales to becoming an independent consultant. We dive deep into the complexities of pricing strategies, the pitfalls of multiple pricing tiers, and how educating customers about price increases can significantly impact win rates. We then shift our focus to the critical choice between freemium and trial-based models, especially for complex, enterprise-grade software platforms. Jon and I dissect the challenges of implementing a freemium model that requires extensive configuration and support, ultimately finding that guided paid trials were a more effective solution. We also discuss the importance of collecting feedback to adjust pricing strategies, ensuring they are well-aligned with the support and infrastructure available for SMBs.

In our final segment, we explore effective pricing strategies for sales success, with a spotlight on value-based pricing for pilot programs. John shares practical tips on setting appropriate pilot fees, covering costs, and offering pilot fee credits towards future contracts to enhance conversion rates. We also touch on the future of pricing and sales, emphasizing the role of transparency in pricing to attract more educated and qualified leads, saving time and reducing frustration. Tune in for a comprehensive guide on mastering the art of pricing in the B2B SaaS landscape!

In this episode:

(00:00) Jon Rydberg discusses his transition from VP of Sales to pricing expert. He highlights the challenges of aligning enterprise pricing with an SMB target audience.

(11:20) The Path From Freemium to Trials - the strategic decision-making process between freemium and trial models. Jon shares insights on why guided paid trials are more effective for complex software platforms.

(15:22) Jon elaborates on value-based pricing for pilot programs, focusing on cost coverage and client commitment. He provides practical tips to enhance conversion rates and secure multi-year deals.

(22:28) The conversation shifts to the importance of transparency in pricing for enterprise sales. Jon and Marcos discuss how transparent pricing can lead to better-qualified leads and streamlined sales processes.

(27:23) A real-world example of a pricing model that hindered sales efforts, and the need for tailored, transparent pricing strategies to avoid such pitfalls.

(31:40) How AI will impact future pricing models. Despite AI's capabilities, Jon asserts that human elements remain crucial for customer interactions and relationship-building.

(34:52) Favorite jam growing up

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Jon Rydberg

Jon Rydberg LinkedIn

Align Advisory Group

Pricing Fraud with Finesse | Tyler Adams (CertifID)

Marcos Rivera — Tue, 10 Sep 2024 11:00:00 +0000

What if your real estate transaction could be hijacked by cybercriminals in mere seconds?

Join me in a discussion with Tyler Adams, co-founder and CEO of CertifID, around the alarming realities of wire fraud in the real estate industry. With a shocking $12.5 billion lost to cybercrime last year according to the FBI, Tyler unveils how fraudsters exploit trust and rapid money movement in real estate deals, and how CertifID is on a mission to secure these transactions through identity verification and robust security measures.

Tyler shares how increasing awareness of fraud risks and changes in insurance coverage have driven a growing appreciation for their product. We discuss the initial resistance to subscription models due to the cyclical nature of the industry, and how this led to the creation of a more tailored annual license plus transaction-based pricing approach—aligning costs more closely with customer value and market dynamics. Tyler explains the transition to a hybrid billing model, balancing subscription and per-transaction fees, and the continuous adaptation required to meet customer needs. We also explore how CertifID navigates the challenges of transitioning existing clients to new pricing structures. This episode is a must-listen for anyone interested in preventing wire fraud and mastering effective pricing strategies.

In this episode:

(00:00) Tyler Adams, CEO of Certified, discusses wire fraud in real estate, and overview of FBI’s fraud report -$12.5 billion lost to cybercrime in one year (reported)

(04:50) Challenges convincing businesses to adopt paid security measures, entering the market with a unique fraud prevention solution, evolving perception of its value, challenges of pricing models, and shift to annual license plus transaction-based pricing

(13:00) Complexity of balancing predictability and flexibility in pricing models

(22:05) What’s working right now in real estate security and pricing, addressing multiple money movements within a single real estate transaction

(28:30) Sales team approaches to customers and commission structures

(36:15) Plans going forward, continuous iteration to align with customer needs and market dynamics, offering tiered insurance options for better customer control and value

(40:40) Favorite jam growing up

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Tyler Adams LinkedIn

CertifID

Building Up Your Pricing from Zero to Clio | Min FitzGerald (Clio)

Marcos Rivera — Tue, 27 Aug 2024 11:00:00 +0000

Join me for a conversation with Min FitzGerald, the Director of Monetization at Clio, who shares her transformative journey from management consulting to leading pricing strategies at a hyper-growth SaaS company. Min's story is a testament to the power of rigorous, structured approaches in driving company growth, particularly through developing Clio's ‘law firm maturity model’.

Min opens up about the intricacies of handling customer churn when altering pricing plans and packages. She emphasizes a bottom-up approach, incorporating customer-level analysis, and using micro tests to fine-tune strategies. Learn the importance of starting monetization discussions early in product development and how a collaborative approach with product and engineering teams can lead to successful outcomes. These insights provide a practical roadmap for anyone looking to enhance their pricing strategy and drive business growth.

In this episode:

(00:00) Min FitzGerald's journey at Clio, transforming pricing strategy and developing the law firm maturity model for growth.

(12:38) Timing and evolution of pricing strategies, organizational buy-in and collaboration are crucial for successful pricing initiatives in B2B SaaS companies.

(17:30) Managing customer churn through customer-level analysis, micro tests, and early integration of monetization in product innovation.

(19:50) Navigating pricing in business growth collaboration between product, engineering, and revenue operations is crucial for pricing and monetization decisions and managing a multi-product portfolio.

(27:07) What’s next for Clio? Multi-product evolution, global expansion of offerings

(30:15) Fearless attitudes, empowering growth and impact.

(32:15) Favorite jam growing up

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Min FitzGerald LinkedIn

Clio

Book: Crossing the Chasm

Annie Schmidt LinkedIn
Stripe
Marcos Rivera LinkedIn
Book: Street Pricing
Email Street Pricing for a consultation

How Stripe took a swipe at bundles | Annie Schmidt (Stripe)

Marcos Rivera — Tue, 13 Aug 2024 11:00:00 +0000

Today Marcos welcomes Annie Schmidt, Product Lead at Stripe, who shares her extensive experience balancing product development and pricing, particularly in her current role leading Stripe's terminal team. We start with a compelling rewind to Annie's days at MindBody, where she faced the challenges of implementing a price increase that initially did not go well. By explaining the 'why' behind price increases and taking a ground-up approach to evaluate customer value, MindBody was able to justify changes and align their offerings with user needs. We also highlight the process of categorizing users into different cohorts and restructuring pricing tiers, ensuring a fair and transparent approach that resonated well with their diverse customer base.

We wrap up with insights into the complex process of implementing successful pricing changes, especially when integrating hardware and software solutions. Annie shares how clear, value-based packages can simplify the decision-making process for both salespeople and customers. Emphasizing user empathy, we discuss the significance of renaming packages to reflect core benefits and presenting features that connect directly with customer needs. Tune in to hear valuable strategies and tips to enhance your own pricing approaches by aligning them with your customers' desires and values.

In this episode:

(00:00) Guest intro- Annie Schmidt of Stripe Product Pricing Strategy Success Story

(03:16) Annie discusses balancing product development and pricing strategies, and shares a rewind story from her time at MindBody.

(08:25) Pricing Strategy and Value Alignment - Communicating and implementing a pricing initiative by emphasizing value, explaining the 'why' behind price increases, and restructuring tiers based on user needs.

(16:50) Effective Pricing Strategy Implementation Data-driven pricing strategies were used to minimize attrition and user dissatisfaction, resulting in the successful implementation of new pricing for software products.

(25:30) Hardware and Software Pricing Strategy - Packages for payment solutions were streamlined and renamed by empathizing with users and presenting features in a customer-centric way.

(34:01) What’s next for Stripe - Collaborative Pricing Strategy Insights - Lessons on avoiding mistakes, connecting with customers, and making incremental improvements for business growth..

(37:13) Favorite jams growing up

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Balancing Innovation and Client Needs | Kyle Westra (Maxar Intelligence)

Marcos Rivera — Tue, 30 Jul 2024 11:00:00 +0000

What if changing one simple metric could revolutionize your company's pricing strategy?

Marcos is joined by Kyle Westra, Senior Director of Strategic Pricing at Maxar Technologies, who shares his expertise in pricing strategy spanning consulting, SaaS, and B2B technology. Kyle recounts transforming Bloomreach's pricing model from per page view to per API, highlighting the critical choice of metrics for simplicity, transparency, and value alignment in pricing strategies.

Next, we delve into implementing new SaaS pricing models, stressing collaboration between customer success and sales teams for smooth transitions. By segmenting customers and preparing thoroughly, teams can effectively communicate changes, enhance customer relationships, and ensure successful rollouts.

Explore the complexities of pricing at Maxar, including strategies for balancing innovation with client needs in government and military sectors. Kyle discusses navigating budget constraints and evolving pricing models, offering insights into hybrid approaches and the future of pricing strategies. Join us to hear how to refine your pricing strategy and foster continuous growth.

In this episode:
(00:00) Guest intro of Kyle Westra, Maxar history and business divisions.

(04:11) Kyle discusses his extensive experience in pricing within consulting, SaaS, and B2B technology sectors. He shares a significant pricing change he implemented at Bloomreach, transitioning from a per-page view to a per-API model. He highlights the importance of selecting the right pricing metric and the key characteristics ensuring it aligns with sales goals and customer satisfaction.

(14:20) This segment delves into the complexities of implementing new pricing models for SaaS companies. Kyle emphasizes the critical role of collaboration between customer success and sales teams. He discusses practical strategies like open office hours and joint game planning to prepare sales teams for communicating changes to customers.

(25:05) The conversation explores the unique challenges of pricing and packaging strategies within Maxar, particularly in the context of serving government and military clients. He highlights the balance between innovation and meeting the needs of existing customers as technology evolves.

(34:32) The focus shifts to the future of pricing models, comparing subscription-based and usage-based approaches. Kyle discusses the importance of building a robust pricing organization with clear roles, responsibilities, processes, and tools. The pros and cons of both pricing models are analyzed, noting the simplicity and predictability of subscription models versus the value alignment and operational effort required by usage-based models.

(40:31) The episode concludes with a summary of the key insights shared throughout the episode. Kyle and Marcos emphasize the importance of leveraging these lessons to eliminate guesswork in professional environments.

(41:31) Favorite jams growing up as a musician, writing the song “The Price Gouging Blues”

Resources:

Kyle Westra LinkedIn

Maxar Intelligence

Amazon bestseller: The New Invisible Hand: Five Revolutions in the Digital Economy

Pricing song: Price Gouging Blues

The Intersection of Brand and Pricing | Shannon Deep and Kevan Lee (Bonfire)

Marcos Rivera — Tue, 09 Jul 2024 11:00:00 +0000

Shannon Deep and Kevan Lee, co-founders of Bonfire, join me to share their journey of shaping brand perception and pricing strategies. Discover the delicate balance between brand storytelling and pricing as we highlight the importance of emotional resonance in buyer decisions. We tackle the complexities of establishing a brand that's human, democratic, and high-touch, emphasizing how this affects pricing strategy.

We venture into the future of brand marketing, balancing the emotional with the data-driven, and discuss the hurdles marketers face in proving the value of brand investments and the potential role of AI in this evolving landscape.

In this episode:

(00:00) Guest intros, brand perception, SaaS pricing, and growth strategies are discussed in the context of end users and buyers, with insights from Bonfire's co-founders Shannon and Kevan.

(04:19) Brand perception and pricing strategy are balanced in a competitive market, with a focus on human, democratic, and high-touch values.

(14:35) Pricing strategy exercise benefits internal stakeholders, validates competitive decisions, analyzes buyer criteria, emphasizes brand differentiation, and aligns perception with goals.

(21:05) Brand and pricing are intrinsically linked in B2B, influenced by emotion and rationality, and can benefit from B2C tactics.

(26:28) The Future of Brand Marketing - Brand marketing's value is often underestimated, balancing emotion and data, convincing stakeholders, and integrating AI for impact.

(35:00) Kevan and Shannon share their favorite jams.

Resources:

Shannon Deep LinkedIn

Kevan Lee LinkedIn

Bonfire

Email Bonfire

Confessions of a Price Guesser: Essential Tips for Entrepreneurs | Paul 'PJ' Jackson (GTM Coach, Mentor & Entrepreneur)

Marcos Rivera — Tue, 25 Jun 2024 11:00:00 +0000

Do you know what practical steps entrepreneurs can take to set and communicate the value of their services effectively?

In this episode, I sit down with Paul ‘PJ’ Jackson, GTM Coach, Mentor and Entrepreneur, who shares captivating stories including one from his time at a major media company. PJ successfully monetized dormant assets by aligning 10 departments and 168 photographers through persistent communication and a focus on demonstrating ROI.

In another segment, we explore the journey of Mary Lou, who transitioned from a Chief Evangelist role to a coaching career. We discuss how reevaluating her pricing strategy helped her align her professional goals with her personal objectives, particularly gaining flexibility to spend more time with her daughter. By recognizing the true value of her services, Mary Lou significantly increased her rates, showcasing a common entrepreneurial challenge of undervaluing one's offerings and the importance of aligning pricing with one's ultimate goals.

We highlight the subjective nature of pricing and the necessity for business owners to be comfortable with their rates to maintain quality. Practical steps for gaining confidence in higher pricing, such as leveraging past experience and effective self-promotion, are also discussed, providing listeners with actionable insights to implement growth strategies in their own businesses.

In this episode:

(0:00:00) Background on PJ, and a compelling story from his experience working with a major media company to monetize dormant assets. PJ successfully created a pricing structure that benefited both the photographers and the company, ultimately turning them into advocates for the new initiative.

(0:12:59) Understanding one's ultimate goals and aligning business strategies to achieve them. We explore a case where an individual named “Mary Lou” transitioned from a Chief Evangelist role to a coaching career.

(0:19:00) The intricacies of pricing strategy and the importance of aligning it with one's values and goals. Being clear about what you want—whether it's financial success, time with family, or market leadership, and the pitfalls of underpricing, such as undervaluation and reduced quality.

(0:25:00) Applying learned lessons to your business operations to ensure growth and success. Whether you're managing a SaaS company or another type of enterprise, we emphasize the need to take actionable steps based on these insights. Never apologize!

(0:30:00) - Favorite jams – Tupac and Santana/Rob Thomas

Resources:

PJ Jacksong LinkedIn

How the 20 year old startup got their groove back | Steve Hamrell (Call Box)

Marcos Rivera — Tue, 11 Jun 2024 15:00:00 +0000

Ever wonder what it takes to rework the pricing strategy of a seasoned company in the SaaS automotive space? Steve Hamrell from Callbox joins us to shed light on the transformation journey they embarked upon, confronting package inconsistencies and the pressing need for a pricing strategy revamp. Together, we peel back the layers of creating a pricing plan that not only resonates with customer value perception but also keeps the business trajectory on the path to scalability.

In our candid conversation, we delve into how a strategic pivot in pricing can revolutionize reseller relationships and streamline the sales process. We explore how Callbox's experiences have shaped smarter, data-influenced decisions in product development. This dialogue is an expedition into the heart of SaaS pricing strategies and the incredible value of aligning them with the ever-evolving market demands.

In this episode:

(0:00:00) - Steve Hamrell provides a detailed overview of the pricing inconsistencies faced by Callbox in the SaaS automotive sector. He suggests the necessity for a comprehensive overhaul of the existing pricing strategy to align with the market standards and customer expectations.

(0:07:02) - The critical role of senior management in implementing pricing changes– they aid in making strategic, data-driven decisions that significantly impact the profitability and growth of the organization.

(0:18:22) - Evaluating the impact of pricing adjustments on resellers, how a reset of reseller pricing to align more closely with market rates can potentially improve their profit margins, simpler pricing is presented as an effective way to streamline land and expand strategies, thus enhancing business scalability.

(0:25:00) - Know your data and market: Maintaining pricing consistency is instrumental for accurate forecasting and ensuring high levels of customer retention. How Callbox is confronting and resolving pricing inconsistencies to improve their business planning and overall financial performance.

(0:27:57) - Favorite jams – Naughty by Nature, Dave Matthews, Snoop and Dre

Resources:

LinkedIn: https://www.linkedin.com/in/steven-hamrell-9b45b44/

Call Box: https://callbox.com/

The Dirty Secret of Dynamic Pricing | James Martin (Rally Corp)

Marcos Rivera — Tue, 28 May 2024 11:00:00 +0000

Listen in as James Martin Sr., CEO of RallyCorp and an esteemed RevOps coach, joins me to unravel the complexities of tailoring pricing models to serve the unique needs of non-profits. James enlightens us with his experiences in identifying the perfect customer profile for his company and how this knowledge is pivotal in tackling their specific challenges. We explore the delicate balance of providing value and determining the right cost, underscoring the critical role that pricing plays not only in profit-driven entities but also in service organizations dedicated to noble causes.

Rounding out our conversation, we discuss effective sales strategies and the psychology behind pricing. From segmenting inbound traffic to leveraging financial transparency of non-profits and public companies, you’ll hear techniques to refine sales messaging and product offerings. We also discuss the nuanced approach required for dynamic pricing and the role of trust in business relationships. Don't miss this opportunity to glean valuable knowledge that could revolutionize your approach to pricing and customer understanding.

In this episode:

(0:00:00) James Martin Sr. shares pricing strategy insights - Focus on customer profile and balancing value.

(0:03:13) Discussion on scaling non-profit services and strategic pricing, emphasizing aligning value propositions with customer segments. Reverse engineering your exit or M&A strategy.

(0:11:52) Exploring customer understanding and segmentation in sales. Leveraging financial transparency for effective sales messaging.

(0:16:09) Delving into confident sales approaches and timing. Avoiding “commission breath”, the importance of patience and strategic follow-ups with clients.

(0:25:30) Analyzing the psychology behind dynamic pricing strategies. Consumer trust and value perception in pricing tactics. Applying insights for business improvement.

(0:30:57) Recapping - pain points, finding the why, framing and messaging

(0:32:24) Favorite jam – Def Leppard, AC/DC, reminiscing about '80s music's lasting appeal

Resources:

LinkedIn: https://www.linkedin.com/in/mrjamesmartin/

Website: https://linktr.ee/mrjamesmartin

Rally Corp: https://www.rallycorp.com/

Professional Pricing Society

Why Good Better Best Didn't Work...at First | Katie Wei (Cloudinary)

Marcos Rivera — Tue, 14 May 2024 11:00:00 +0000

Today we welcome extraordinary pricing strategist Katie Wei, Director of Pricing Strategy at Cloudinary. Starting from her early days in accounting and software, Katie reveals her journey into the intricate world of pricing strategy and her two-decade-strong passion for the field. She gives us a candid look into the art of handling pricing objections, her unique approach to sales management training, and a teaser of her upcoming keynote address at the Professional Pricing Society conference.

We tackle the significance of pricing in leadership and its role in shaping company dynamics. Katie provides insight into the intricacies of navigating senior leadership, showcasing pricing as a powerful, often underestimated, tool for addressing complex business issues like customer retention. We delve into the RACI matrix for managing multifaceted projects and how to demonstrate the strategic value of pricing expertise beyond just crunching numbers. Katie shares the importance of leveraging data and customer feedback, using tools like 'dollarization' to help customers see the tangible value of products and services. We encourage listeners to reevaluate their current pricing strategies and better capture the value they deliver.

In this episode:

(00:00) Elevating Pricing Team Excellence in Business - Pricing ninja Katie Wei shares insights on handling objections, training in sales, and elevating pricing teams to a strategic level.

(12:47) Strategic Pricing and Leadership - Strategic pricing, consensus-building, RACI matrix, demonstrating value, finding a ‘vacuum’, and navigating challenges in organizational leadership.

(24:49) Future of Outcome-Based Pricing - Align customer value with revenue growth, use data to calculate impressions, gather feedback, 'dollarization' technique, and outcome-based pricing models. How Cloudinary functions - bandwidth, conversions, and revenue.

(34:44) Capturing Value - Reassess pricing strategies based on outputs, not inputs. AI and watching how it plays out,

(36:00) Favorite jam of all time - Katie changes with the times, as listening to new music keeps you young, but “when the s*%# hits the fan”, she loves Tom Petty.

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Katie Wei LinkedIn

Good Better Best Newsletter

The Art of the Pivot: Why Freemium Failed | Rob Litterst (HubSpot, Pricing SaaS)

Marcos Rivera — Tue, 30 Apr 2024 11:00:00 +0000

Unlock the secrets to skyrocketing your SaaS business with pricing strategies from none other than Rob Litterst, the pricing prodigy with HubSpot roots and co-founder of Pricing SaaS. We get the scoop on how Rob transitioned from sales to becoming a strategy maestro at ProfitWell, and we explore the transformation from broad freemium offerings to cultivating lasting relationships with high-value customers. The nuances of SaaS pricing emphasize the necessity for patience and a willingness to adapt as you shape features that resonate with paying users.

Finally, we gaze into the crystal ball to predict the future of SaaS pricing models, weighing up HubSpot's cutting-edge tactics against those of the industry heavyweights like Salesforce. The conversation takes a turn into the potential revolution that AI brings to the pricing table, enhancing how we process data and complement human expertise. And because every memorable episode needs a quirky finale, Rob and I take a nostalgic trip down music lane, reminiscing about the iconic tunes that shaped the soundtrack of our lives.

In this episode:

(0:00:00) Rob Litterst delves into his evolution from sales to a strategic role at ProfitWell, and his insights into SaaS pricing's critical role in growth. The discussion offers SaaS operators valuable perspectives on using data to drive pricing decisions, and how Rob applies his theoretical knowledge to his SaaS company, Pricing SaaS.

(08:55) Navigating Pricing Strategies in SaaS - In this segment, we delve into the transformation of a SaaS business from a freemium model to one that focuses on cultivating relationships with high-value, invested customers. The conversation highlights the lessons learned from this shift, emphasizing the importance of adaptability, patience, and the strategic decision to provide accessible pricing expertise to a market hungry for data-driven guidance.

(17:35) HubSpot's Pricing Model and Sales Strategy - HubSpot's early innovative pricing strategy and its consultative sales approach that helped establish customer trust. Rob discusses the benefits of a tiered pricing model that was aligned with customer growth and how this approach not only made economic sense but also supported product-led sales.

(21:58) Looking Forward - Pricing Models in SaaS - The future of SaaS pricing models, with a particular focus on HubSpot's blend of feature-based and consumption-based pricing. Contemplating the evolution of CRM pricing and the trend toward hybrid models, considering the impact of AI on developing innovative pricing strategies.

(28:20) AI and Pricing - The dialogue turns to the role of AI in enhancing SaaS pricing models and the emerging trend of outcome-based software. The increasing need for human expertise to augment AI's capabilities is investigated.

(33:15) I Got Five On It, No Way Out

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Rob Litterst LinkedIn

Blue Star Innovation Partners

When good bundles go bad (and how to fix them) | Cameron Barragan (Blue Star Innovations)

Marcos Rivera — Tue, 16 Apr 2024 11:00:00 +0000

Ever wondered how the leaders of the software world conjure up pricing strategies that turn pixels into profits? Cameron Barragan of BlueStar Innovation Partners joins us to share the secret sauce behind his SaaS success. Cameron highlights the fine art of crafting pricing models that resonate with customers and bolster the bottom line. From tackling the tricky terrain of post-acquisition pricing integration to the enlightened approach of bundling products for growth, Cameron's insights illuminate the complex dance between monetization and customer satisfaction.

By marrying core and ancillary products into irresistible bundles, our conversation underscores the magic of a well-crafted offer in boosting average revenue per user and ensuring the longevity of a SaaS venture. As we wrap up, we wade into the economics of strategic bundling, balancing the scales between enhancing customer value and maintaining healthy internal profit and loss accounts. We peer into the future of emerging tech, such as generative AI, and how it is poised to reshape the pricing and packaging landscape.

In this episode:

(0:00:00) Pricing Strategies in SaaS Industry - Cameron Barragan discusses the complexity of SaaS pricing strategies and the importance of an operator-forward approach in investment decisions. He highlights how M&A expertise can enhance portfolio growth and addresses the challenges of integrating acquired products into existing pricing structures.

(0:10:49) Simplifying Buyer Journey for Success - The conversation delves into the benefits of streamlining the sales process to improve the buyer's experience and company economics. It emphasizes the successful integration of core and ancillary products, the strategic implementation of annual price increases, and the importance of natural buying experiences aligned with customer behavior.

(0:15:44) Maximizing Value Through Strategic Bundling - Cameron and the host explore the delicate balance of product bundling, discussing the internal barriers due to separate product P&Ls and the need for economic incentives. They advocate for bundles that enhance customer value and company growth, while considering the organizational alignment needed to support effective product combinations.

(0:23:08) The Economics of SaaS Bundles - This segment examines the strategic considerations behind SaaS revenue models, focusing on revenue predictability, market conditions, and the impact of technology like generative AI on pricing and packaging. It emphasizes the importance of well-thought-out bundling strategies to increase product usage, contract value, and retention.

(0:31:15) Favorite jam growing up - Sublime and the surfing world in LA

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Cameron Barragan LinkedIn

Book: Strategy & Tactics of Pricing - Nagle

Book: Power Pricing - Dolan

Mastering Consistency for Scalable Success | Karan Sood (Rakuten Kobo, Inc)

Marcos Rivera — Tue, 02 Apr 2024 11:00:00 +0000

Imagine navigating the complex terrain of pricing strategies with none other than Karan Sood of Rakuten Kobo, a virtuoso of sales operations. We peel back the layers of traditional cost-based models and reveal the intricate dance of value-driven pricing. As Karan recounts tales from his time in the automotive trenches, where static pricing was a missed opportunity, we're reminded that the price tag hanging off products isn't just a number—it's a story of market life cycles and competitive choreography.

With case studies in hand and compensation models flipped on their heads, Karan breaks down the metamorphosis of pricing, and how value communication is the game-changing strategy that keeps the cash registers ringing. As we gaze into the crystal ball of pricing's future, Karan and I dissect the up-and-coming world of outcome-based models—where tech payments are entwined with measurable results, thanks to the surgical precision of AI.

In this episode:

(0:00:00) Evolution of Pricing Models - Discussing the shift from cost-based to value-driven pricing, emphasizing the need to adapt pricing strategies to a product's lifecycle and market saturation.

(0:08:46) Digital Transition in Advertising - Karan’s transition from automotive into traditional print to digital advertising and the challenges of measuring value, change management, and customer adaptation during this transformation.

(0:16:48) Market Dynamics and Pricing - The importance of staying current with industry evolution and consumer trends to align pricing strategies with market changes, and the distinction between perceived and economic value in pricing.

(0:28:59) Outcome-Based Pricing in Tech - Exploring the tech industry's move towards outcome-based pricing models, the role of AI in measuring success, and the associated legal and revenue considerations.

(0:36:10) Favorite 90s hip-hop jam and what Biggie might be doing in today’s world

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Resources:

Karan Sood LinkedIn

Rakuten Kobo, Inc.

Pricing: A Value-Based Approach - Dolan

How we raised prices without pushback | Rob Merklinger (Influitive)

Marcos Rivera — Tue, 19 Mar 2024 15:00:00 +0000

Unlock the potential of customer engagement while avoiding the pitfalls of complex pricing models with Rob Merklinger, the CRO and SVP at Influitive. We unravel the sophisticated journey of pricing strategy revamps, providing you with the blueprint for aligning your price points with the perceived value to your customers. Our discussion is peppered with insights into Influitive's pivotal shift towards a simplified, tiered pricing structure that not only fosters transparency but also reinforces upselling, cross-selling, and customer retention.

We dissect the mechanics of shifting perceptions from being "nickel and dimed" to feeling valued, and how this delicate balance requires adept salesmanship and cross-departmental collaboration. Rob offers a play-by-play on how his team trained for tough conversations about pricing changes, ensuring customers felt like partners in the process, not just revenue sources. The episode is a treasure trove of insights for businesses eager to enhance engagement and growth without sacrificing their bottom line or customer happiness.

In this episode:

- Customer Engagement Pricing Strategies - Rob Merklinger shares how customer feedback initially influenced Influitive to rethink its pricing model. The goal was to create a simplified pricing model that was in line with the value perceived by customers, thus enhancing upselling, cross-selling, and customer retention.

- (08:31) Overcoming Internal Challenges - Internal hurdles faced when changing perceptions about pricing. The focus is on the need for understanding and adjusting to these changes within the organization.

- (12:31) The Role of Cross-Departmental Collaboration - The critical role of cross-departmental communication in implementing the new pricing model. Rob discusses how various departments came together to make the transition smooth.

- (17:01) Preparing the Sales Team - The importance of adequately preparing the sales team to discuss price increases with customers and be well-versed with the new pricing structure.

- (21:01)The Power of Customer Feedback - How customer feedback positively impacted pricing changes. Rob underscores the importance of making sure that customers perceive the new pricing structure as fair.

- (25:01) Favorite 90s hip hop jam

Resources:

Rob Merklinger LinkedIn

Influitive

How to deliver value before your customer buys | Kyle Poyar (OpenView Partners)

Marcos Rivera — Tue, 05 Mar 2024 13:45:00 +0000

Today Kyle Poyer, operating partner at OpenView and a former pricing strategist at Simon Kutcher, shares his seasoned perspective on the SaaS pricing journey. As we walk through the evolution of pricing strategies, Kyle reveals the pivotal moments B2B software companies face as they transition from undervaluing their offerings to recognizing their true worth and the need to increase average contract values. Our stroll down memory lane uncovers the alignment in our approaches to pricing, highlighting the crucial practical aspects of monetization and the impact of pricing decisions on company growth.

Explore the cutting-edge intersection of Product-Led Growth (PLG) and traditional sales strategies, and the misconception that PLG equates to sales-free operations. As the SaaS industry continues to evolve, we examine the role of AI in shaping future pricing models, pondering the potential of usage-based and success fee approaches. Kyle and I also discuss the significance of simplifying contracts and smart partnerships, such as those with cloud providers, to streamline the buying process. Tune in for a trove of actionable insights that could be the game-changer for your SaaS pricing strategy.

In this episode:

(0:00:00) Evolution of Pricing in SaaS - Kyle Poyer offers a comprehensive discussion on the history and evolution of pricing in the SaaS industry. He highlights the strategies that have evolved from initially underpricing products to recognizing the true value they provide.

(0:04:25) Pricing Strategy Evolution in SaaS - There has been a significant increase in the Annual Contract Value (ACV) among SaaS companies. As these startups grow more confident, they are able to better identify their ideal customers and tailor their services accordingly.

(0:15:47) Evolution of SaaS Pricing Strategies - Misconceptions surrounding the Product-Led Growth (PLG) model in SaaS are effectively addressed and debunked. The integration of PLG with sales is shown to be a successful approach for user acquisition and retention.

(0:27:24) Future of Pricing With AI - The talk delves into the potential impact of AI on future pricing models and the implications for the SaaS industry. Specific strategies that could benefit B2B SaaS companies are highlighted and explored in detail.

(0:38:46) - Favorite (secret) jam growing up

Resources:

Kyle Poyar LinkedIn

OpenView Partners

How we tripled our ASP by being proactive with pricing | Rohit Chhabra (W Energy, Omnigo)

Marcos Rivera — Tue, 20 Feb 2024 12:00:00 +0000

Have you ever felt tangled in the web of SaaS pricing strategies, wishing for a guiding light? Well, look no further, because Rohit Chhabra, Chief Product & Technology Officer at W Energy is here to unravel the complexities of SaaS monetization. In our conversation, we dissect the art of aligning pricing models with both product lifecycles and market penetration goals. Rohit shares stories about deconstructing a bewildering pricing strategy, shedding light on the importance of clear communication with both customers and sales teams.

You’ll hear about the evolution of usage-based pricing and the emergence of value-based models in the SaaS landscape. Rohit shares some complexities of customer engagement and usage patterns, emphasizing proactive vendor-client relationships and the pitfalls of underutilization. For any SaaS leader or enthusiast, this episode offers an array of actionable insights on monetization, pricing, and packaging strategies.

In this episode:

(0:00:00) - Lessons on Pricing Strategies - Rohit Chhabra engages in a thorough discussion about the crucial role of pricing alignment, and how such strategies are intricately tied to the product lifecycle, affecting every stage from introduction to maturity and decline.
(0:14:06) - The Importance of Aligning SKUs With Pricing and Packaging- Delving into SKU rationalization, and how it can greatly enhance sales efficiency by reducing complexity, thus streamlining the process of upselling and cross-selling paths for a more streamlined and customer-centric approach.
(0:21:19) - The Advantages of Usage-Based Pricing and Value-Based Models – Benefits of usage-based pricing are brought to light. This includes the early detection of customer attrition and the ability to focus more directly on Return on Investment (ROI), ensuring a more efficient allocation of resources.
(0:30:06) - Encouraging Initiative: The First Step Towards Success in SaaS Leadership - Rohit underscores the pivotal role of initiative in SaaS leadership, highlighting the importance of empowering individuals and teams to take the first steps towards success, fostering a proactive and growth-oriented environment.

(0:31:06) - Wrapping Up: Valuable Insights on Pricing Strategies - Final thoughts on pricing strategies, with a particular emphasis on the value of proactive customer engagement.
(0:32:07) - Rohit’s favorite 90s hip hop song

Resources:

Rohit Chhabra LinkedIn

W Energy

Kirsten Moorefield LinkedIn

How our low friction model increased growth by 10X | Kirsten Moorefield (Cloverleaf, TEDx Speaker)

Marcos Rivera — Tue, 06 Feb 2024 12:00:00 +0000

How do the wizards of SaaS concoct the perfect pricing and packaging solutions? Marcos Rivera sits down with Kirsten Moorfield, Cloverleaf's co-founder, to uncover the secrets behind formulating products that pack a punch. Journey through the labyrinth of setting and tweaking prices in a space where personal assessments morph into coaching gold. Kirsten's candid tales from the frontline deliver a masterclass in striking product-market harmony and the art of customer enlightenment.

We celebrate the success stories of SaaS companies that have seen a surge in sales growth and customer renewals. Delve into the transformational sales model that has slashed the time to close and fatten contracts, and how a focus on post-purchase growth can lead to a substantial revenue boost. We'll also dissect the strategic targeting of key audiences for business expansion and the continuous refinement of sales processes. So, tune in and get equipped with the strategies and insights needed to enhance your pricing, packaging, and growth initiatives in the SaaS landscape.

In this episode:

(0:00:00) - SaaS Pricing Strategies - Kirsten Moorfield discusses Cloverleaf's unique pricing struggles and evolution, from product-market fit to refining their go-to-market strategy.
(0:11:12) - Lowering Risk and Boosting Adoption - Kirsten and Marcos discuss strategies to overcome adoption fear in large enterprises. They discuss innovative sales models, including credit systems and overage pools.
(0:14:54) - Sales Growth & Zero Churn - Conversation shifts to Cloverleaf's new sales model, reducing deal closing time and increasing revenue through post-purchase growth. Kirsten shares data supporting this approach.
(0:26:52) - Business Growth Focus - Marcos and Kirsten discuss targeting the right audience, refining sales pitches, and aligning for growth.

Resources:

Cloverleaf

2024 Anti-Predictions with CEO Marcos Rivera | Street Pricing

Marcos Rivera — Tue, 23 Jan 2024 17:00:00 +0000

Brace yourselves for a unique perspective as we navigate through the sea of predictions circulating out there. Amidst the cacophony of forecasts for the upcoming year, this episode diverts our attention to what won’t unfold in 2024. This is not just about offering contrarian views; it’s about providing valuable insights for B2B SaaS leaders, the trailblazers among you. So, buckle up, as these anti-predictions diverge from the prevalent narratives and challenge the assertions of numerous pundits.

In this episode, Marcos Rivera shares his 5 anti-predictions for B2B SaaS in 2024:

(00:56) Sales will not get easier: Marcos disagrees with the notion that sales in B2B SaaS will become easier in 2024. He emphasizes the importance of keeping friction low in pricing, packaging, and contracting.

(02:16) AI adoption won’t outpace last year: While AI adoption will continue, Marcos predicts a shift from rapid adoption to a more cautious approach. Concerns about use cases, safety, privacy, and the costs associated with AI will lead to a slower pace of adoption.

(04:12) Startup apocalypse won’t happen: Contrary to predictions of a startup crash, Marcos believes that startups will fail at a similar rate as before. He advises established B2B SaaS companies to leverage their tenure and reputation during a potential influx of failed startups.

(05:17) Usage-based pricing won’t overtake subscription: Despite the attention on usage-based pricing, Marcos anticipates it won’t surpass subscription models in 2024. He suggests B2B SaaS companies test hybrid models before fully embracing usage-based pricing.

(07:11) PLG (Product-Led Growth) won’t see a huge wave: Marcos challenges the idea that everything will shift to PLG in the next five years. He acknowledges the value of PLG, especially for smaller deals, but expects a slower adoption pace in larger, more complex enterprise software.

Overall, Marcos advises B2B SaaS companies to invest in PLG, focus on easier onboarding, and continuously work on making products easier to adopt and sell.

Resources:

Christian Nimsky LinkedIn

How we drove more enterprise value with pricing | Christian Nimsky (Vehlo)

Marcos Rivera — Tue, 09 Jan 2024 17:00:00 +0000

Ever wondered why some SaaS companies soar with their pricing strategies while others nosedive? Christian Nimsky, SVP of Product at Vehlo, joins us to unravel the enigma. Christian dissects the critical misjudgments that can plague pricing models—think overlooked customer engagement and misinterpreted buying processes. We navigate through his treasure trove of experiences, from past blunders at PADI scuba to the cutting-edge techniques at Vehlo, where the focus is on crafting software and fintech solutions for aftermarket repair shops. The conversation is a masterclass in transforming pricing pitfalls into profitable strategies, with Christian sharing his playbook for avoiding the common traps that ensnare many a SaaS venture.

Vehlo provides automotive software and financial solutions to improve the car owner’s experience. The company’s automotive software, marketing and payment solutions are inspired by their customers’ needs. These solutions are designed to handle their back office, empower their employees and create loyal customers. Vehlo is committed to customer financial success in an unpredictable world.

In this episode:

(00:00) Background and path to Vehlo - Christian shares pricing strategy lessons from PADI and Velo, emphasizing customer engagement and understanding buying decisions.

(12:29) Customer Voice and Pricing Strategies - Customer feedback guides corporate strategies, understanding the 'why' behind actions, diversifying revenue streams, and implementing effective pricing strategies.
(23:38) Maximizing Value and Future Growth Strategies - Demonstrate value to customers through data, past successes, and future developments. Digitization and package laddering can simplify operations and inform pricing strategies.
(31:00) Christian’s favorite hip-hop song plus a 90s favorite

Resources:

Vehlo

Keep your pricing from going stale with experimentation | Pricing I/O Team - A Holiday Huddle

Marcos Rivera — Fri, 22 Dec 2023 17:00:00 +0000

Today we're diving deep into the realm of SaaS street pricing strategies. We've assembled a powerhouse panel with Aaron, Amit, Emily, and Peter from Pricing I/O, bringing a wealth of knowledge from their combined experience in B2B SaaS consultations. We're unpacking the complex dance of pricing adjustments — the critical choreography of balancing value, features, and customer engagement to drive growth. Our experts will discuss why it's paramount to keep a vigilant eye on usage data to fine-tune offerings and avoid the common trap of overstuffing plans that can stifle potential revenue expansion.

We'll also be talking about the elephant in the room - how too many goodies in starter plans might be cannibalizing your premium options and inadvertently leading to customer churn. But it's not all charts and figures; we blend in evolutionary insights on how AI is reshaping pricing strategies across various industries, signaling a new era of usage-based pricing. And here's a twist – as we wrap up the conversation, our guests will drop their favorite 90s hip-hop tracks to keep it light.

Special Guests:

Peter Cohen: Pricing Strategist; recent clients include: Cloudbeds, Miro and Vehlo
Aaron Mass: Senior Pricing Strategist; recent clients include: Trulioo, Totango, Fleetio
Emily Sanz: Director of Pricing Analytics; pricing leaders in aviation, biotech and nutrition
Amit Saraf: Senior Pricing Strategist; recent clients include: Lytx, CertifID, Inktavo

In this episode:

(00:00) The Significance of Usage Data - The role of usage data in identifying user-valued features.
(13:03) Leveraging Usage Data to Sculpt Pricing: The conversation delves into the significance of utilizing usage data to optimize software packages and features. The team discusses how analyzing customer interactions can lead to creating more value by tailoring offerings to actual usage, thus avoiding feature bloat and encouraging upsells.
(0:19:01) The Necessity of Frequent Pricing Revisions: Highlighting a counterintuitive approach, emphasizing what not to do in SaaS pricing. The team explores the pitfalls of leaving pricing static and underscores the importance of regular pricing reviews in alignment with market changes and product evolution.

(0:27:06) Anticipating Future Trends in SaaS Pricing Models: Looking ahead, the team forecasts upcoming trends in software pricing, predicting a move towards personalized and flexible pricing strategies. They discuss the potential of AI in pricing and stress the importance of ongoing reassessment and innovation to stay competitive.
(35:00) A lighthearted ending discussing each guest's favorite '90s hip-hop songs

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO, Coach and sought after slayer of bad pricing, Marcos Rivera. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guesswork out of pricing.

Resources:

Pricing I/O

How I cracked the code and doubled MRR | Bill Wilson (Pace Pricing, SaaS Academy)

Marcos Rivera — Fri, 15 Dec 2023 17:00:00 +0000

What if you had the power to steer customer behavior with effective pricing strategies? Join us as Bill Wilson, CEO of Pace Pricing, unveils the intricate world of SaaS pricing. We journey through his experiences and expertise in implementing pricing changes, the unique impact of entitlements, and the art of communicating pricing to customers.

The conversation delves into pricing strategies, discussing their impact on business success and the importance of iterative changes. You’ll hear about the need for constant testing and revision to find a model that works. In addition, we shed light on current trends and best practices in pricing strategies. The conversation takes a twist as we discuss the challenges of pricing AI and the future of this domain. Lastly, we had some fun with Bill revealing his favorite hip-hop jam. Don't miss out on these practical tips and invaluable insights.

In this episode:

(00:00:00) Bill Wilson discusses his experience in implementing pricing changes in the SaaS industry and shares insights on trends and patterns in SaaS pricing.
(00:08:16) Experimentation and Data-Driven Pricing Strategies: Wilson discusses the topic of setting limits in pricing plans for SaaS companies and shares an example of how experimenting with different entitlements resulted in a 20% increase in MRR.
(00:15:45) The Importance of Iterative Pricing Strategies: The importance of understanding customer needs and jobs to be done, as well as the value of tracking usage data and establishing a baseline.
(00:20:28) Expansion and Pricing Strategies: The shift towards expansion in the SaaS industry and the strategies that can increase net dollar retention are discussed, along with the importance of having a value metric that aligns with customer success.
(00:26:37) Pricing AI: Insights on the challenges of pricing AI in the future, including finding a tangible cost of goods sold and leveraging AI against competition.
(00:26:37) Wilson reveals his favorite hip-hop jam

Resources:

Pace Pricing

Bill Wilson LinkedIn