Okay, so the Pokemon catchphrase 'Gotta catch 'em all' sums up this problem: Some pricing models inhibit the natural expansion volume of the customers - e.g.: - We sell factory locations, but customers start with 1 factory and grow slowly from there. - We sell 10 users... but every customer have 100+ potential users. - We price per patient... but only get to handle patients of type A, not types B and C. The simple example-fix is to price per number of employees (a volume outside the control of the customer) instead of per user (a volume controlled and reduced by the customer)... but what other ways have you guys used to solve the share-of-wallet problem? Asking for a friend 😉

Howdy pricing people! Hope your week is off to a great start. In two weeks, we're hosting a private event with Scott Woody, CEO of Metronome. Scott is one of my favorite thinkers on SaaS and AI pricing, and past Office Hours sessions have been jam-packed with insights. We're looking for a short list of leaders at Enterprise SaaS and AI companies to join the session to discuss: - Designing Pricing & GTM for AI - Building a Monetization Operating System - Open Floor: AI Pricing Challenges You're Facing We'll be keeping attendance to this one limited. If you'd like to attend, apply at the link below: https://luma.com/z6cw0f54 Otherwise, have a great week! If you're in the US, happy Thanksgiving 🦃 Rob

Howdy Pricing People 👋🏼 There's a fundamental tension in SaaS I can't stop thinking about: Every SaaS company wants an AI story right now. To have a credible AI story, people need to be using your AI features. If people are using your AI features at scale, your margins will take a hit. Nobody wants margin erosion because we're still valuing SaaS companies on metrics built for the previous generation. The short-term playbook says protect your margins. The long-term playbook says invest in AI or get left behind. They don't reconcile. I'm genuinely curious how you're all thinking about this: - What should SaaS companies be doing right now? - Seemingly everyone is turning to credits as a hedge to both tell the AI story and maintain margin control. Are there other strategies SaaS companies should consider? - Does something fundamental need to change in how we evaluate these businesses? Drop your thoughts below. I'll be digging into this in this week's newsletter, and would love to share perspectives from this group. 🫡 Rob

Hi all. I have a question about "pricing" that is not related to SaaS, but rather to transforming Professional Services into ARR. Two years ago we started an initial experiment: delivering live online training to IT professionals working in SMEs, using a membership-based approach. Our value proposition: - 8 courses scheduled throughout the year - Two yearly membership options for the customer: - 1) Membership for 1 participant: X€ - 2) Membership for up to 3 participants: 1.6 × X€ (It worked. And we were so happy that we (I) made the BIG mistake: not considering at all - for the second year - the physiological Churn Rate..) For next year, we want to apply the same business model to end-user training (Office M365 Apps). OUR PRODUCT: 8 courses scheduled in advance for all of 2026 OUR TARGET: small/micro companies (2 to 10 potential users) OUR COST STRUCTURE: main costs are fixed (trainer, organization), so the number of people per company in each class is not an issue. PRICING IDEA: offer customers a flat yearly price, divided into tiers that help maintain profitability. We are considering pricing per Company, based on the total number of attendees per course. For example: - 1–2 attendees - 2–5 attendees - 5–10 attendees - I would appreciate any suggestion on how to keep the pricing simple and fair for both sides I have already interviewed about 5 customers who are interested in the concept, but I have not shared any pricing with them yet. Do you thing that pricing per tier is the best options or do you think we have to think in a different way? Thanks in advance to all. Claudio

Hello all. I'm Hristo Vasilev. I used to jump for joy when I was going to the office of my first pricing job. I love what I do. Currently, I'm pricing industrial SaaS apps and deals at GE Vernova. I look forward to sharing expertise and feedback with you.