1. Value based
pricing
How to determinate the best price
for your product
November 2016
Be a #PricingHero
Alexandr Galkin
CEO, co-founder
galkin@competera.net

2. Best B2B
Startup
Retail
Innovation
Startup
of the Year
2014
35 employees
one of the best Data Delivery
Solutions on the market
offices in Kyiv, St.
Petersburg, London
founded
2016 70+ happy customers
worldwide
2015
CIS e-commerce market leader in
data delivery and price analysis
2

3. SaaS pricing it’s easy, they said...
3

4. 4

5. ● 80% customers bought only first tiers for $30 per month
● We always gave an explanation what do tiers options mean
● No one bought the same list of options
5

6. We closed our Pricing page and raised
product price more than 10 times
6

7. And guess what?
7

8. We were closing same amount of deals
with x10 price quote!
8

9. Epiphany 1. Values & Benefits are more important
than product features
9

10. Value based pricing it's all about the
customers and their needs
10

11. Value is a subjective benefit of product, based on its
features and declared to the customer
#1
11

12. Valuable are only those things that valuable in
the eyes of the paying customers
#2
12

13. Value creation example
Feature: MP3 player with 16Gb storage
Benefit: Can keep 8 000 songs
Value: Run a party for 18 hours
Feature
Value
13

14. 14

15. Customers don't care how much something cost to
you or to your competitors. They only care about
value they’ll get for a particular price
15

16. The main challenge for Value Based Pricing is:
Combine the price with delivered value.
More about Value Proposition - https://goo.gl/gKzseR 16

17. Awesome, Alex but ...
… still $10 or $10 000 ?
17

18. Epiphany 2. Buying personas and sales model
determine your pricing
18

19. Three SaaS Sales Models
https://goo.gl/3FGYYM
Transactional Enterprise
Self-service
(SMB’s)
High
Low High
PRICE
Complexity (or time, cac)By Joy York
19

20. Three SaaS Sales Models
https://goo.gl/3FGYYM
Transactional
SMB’s
High
Low High
PRICE
Complexity (or time, cac)
Enterprise
CV < $ 100 per mo.
Sales Cycle < 3-5 dais
No commitments
CV > 10+k per mo.
Sales Cycle > 4-6+ mo.
SLA&KPI driven dealsCV ~ 3 - 10k
Fixed efforts
Typical integration
20

21. Three SaaS Sales Models
https://goo.gl/3FGYYM
Transactional Enterprise
SMB’s
High
Low High
PRICE
Complexity (or time, cac)
The best SaaS
growing model
21

22. Three SaaS Sales Models
https://goo.gl/3FGYYM
Transactional Enterprise
SMB’s
High
Low High
PRICE
Complexity (or time, cac)
Competera growing
line
22

23. Always keep in mind simple rule
"the right product at the right price to the right person"
and
one plan for one buyer persona.
23

24. 24

25. Epiphany 3. Usage-based pricing or Pricing that scales
with usage (through value metrics)
25

26. You wouldn’t want to charge Disney’s sales
team 500 persons the same amount as
Competera’s sales team 5 persons, would you?
26

27. This guy's using “usage based” pricing
27

28. This guy's using “usage based” pricing
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29. Net Cost
29

30. ***no one f$&@n care about your costs
30

31. Your ideal pricing
model
Buying persona
Key benefits
Scale with
usage opp.
Features
PRICE
31

32. What to read more about
SaaS pricing approaches?
Lincoln
Murphy
Joy
York
Patrick
Campbell
32

33. THANKS!
Alexandr Galkin
galkin@competera.net
Pricing is a Process
Be a #PricingHero!
Deck download link: https://goo.gl/kK9ubU