Howdy pricing people! Hope you all had a restful break and your year is off to a great start. We're back at it with a fresh Office Hours session with @Ulrik Lehrskov-Schmidt. Most of you know Ulrik, but if not, he wrote my personal favorite book on pricing, The Pricing Roadmap, and has worked with 200+ B2B SaaS companies as the CEO of Willingness to Pay. We'll be collecting questions in advance (@Alexa Gjonca - already got yours 🫡) and will use the remainder of the hour for live Q&A. The event is next Friday, 1/16, at 10am EST. Register here and drop your questions in the thread below. Look forward to seeing you there! Rob + Ulrik

Hey folks, Our B2B sales led SaaS business is currently exploring some changes to how we communicate pricing to customers in our Order Form. One of our goals is to get better at expiring / removing discounts at renewal in order or improve our expansion ARR and therefore improve our NDR. Today, we don't show any discounts on the Order Form. We're aligned internally that we want to start showing discounts so our customers clearly see that they are getting a discount and our reps at renewal have a number to point to when they discuss reducing or removing that discount. One item I'm looking into is how to clearly communicate to customers that the discount will expire after the initial term. I looked at a handful of Order Forms for vendors we buy from (Slack, Zoom, Salesforce, HubSpot, etc.) and it was rare to see any mention in these regarding the treatment of discounts. Does anyone have experience explicitly writing into the contract how discounts will be treated in future terms? One of our concerns is being explicit with this will prolong negotiations. Thanks for any advice! Best, Steve

For those of you with experience using credit based price models, I'm curious what you're perspective is on how packaging fits into the broader monetization strategy. I ask because if you're using a credit based price model, you presumably have a lot of flexibility with monetizing the usage of various areas of your solution. In that world, limiting access to features through packaging doesn't seem like it really has a place. I'd much rather focus on giving my customers access to all the features they need and encouraging adoption/usage to drive up credit consumption. Am I thinking about this correctly? Thanks! Steve

Hey folks. Context: I'm working on introducing better pricing guidance for our B2B SaaS product that's sold using a sales led motion. Today we just have list prices and we want to introduce target prices. We've never published our list prices nor put them on customers' agreements so we have some flexibility with changing these to fit our needs. We do want to move to showing customers the list price, discount, and net pricing on agreements. This will help us more effectively expire discounts that are intended to be short term (e.g. 1st year). Question: When you're thinking how to set list vs. target price (target discounts), what have you seen work well? Hypothesis: My initial thought is to set the target price 10% - 20% below the list price. Here's my rationale: 1. If sales starts the negotiation at list, it gives them some room to negotiate down to target 2. If we want to setup most of those discounts as 1st year only discounts, then the price jump for customers isn't painfully large 3. Our discount escalation policy is setup so AEs can discount 10%, Sales Directors (20%), RVPs (30%), etc. Targeting a discount of 10% to 20% should keep most deals from reaching the more senior approval levels. Would love to hear some thoughts on the topic if anyone has any. Thanks in advance! Steve

Are there any free websites that provide information on companies' pricing strategies and list prices?