Street Pricing with Marcos Rivera

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  

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: 

Kyle Poyar LinkedIn 

OpenView Partners 

Marcos Rivera LinkedIn 

Email for a consultation  

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: 

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: 

Rohit Chhabra LinkedIn 

W Energy 

Marcos Rivera LinkedIn 

Email for a consultation  

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: 

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: 

Cloverleaf 

Kirsten Moorefield LinkedIn 

Marcos Rivera LinkedIn 

Email for a consultation  

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:

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. 

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 guesswork out of pricing.  

Resources:

Marcos Rivera LinkedIn

Email for a consultation 

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: 

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: 

Vehlo 

Christian Nimsky LinkedIn 

Marcos Rivera LinkedIn 

Email for a consultation  

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: 

In this episode: 

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 

Marcos Rivera LinkedIn 

Email for a consultation  

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: 

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: 

Pace Pricing 

Bill Wilson LinkedIn 

Book: Street Pricing 

Marcos Rivera LinkedIn 

Email for a consultation  

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.  

Today’s guest is Hamzah Hafesji who is Group Product Manager at Advanced.

Hamzah talks about a talent management product that was started in 2017. (3:23) The challenge he faced was going from a start-up strategy to scaling up and having the right pricing for the packages. They needed to look at the pricing and packaging and they did mystery shop exercises on the competition. (6:26) Using all the information they collected they went to a “Good, Better, Best” model.

Hamzah tells Marcos how they went and did their mystery shopping exercise. (12:27) They used an employee who had given his notice to leave the company. That person went and inquired about pricing, packages, and other companies’ different strategies. They had a lot of data.

They wanted to position themselves as the premier product. (14:41) Hamzah talks about his biggest challenge, which was talking with the sales team about the new pricing. Hamzah felt that with any change initiative, the go-to-market execution is super important. His one takeaway from this is “selling value is not just the price point, you’ve got to think about the entire piece of your value change.” (18:09)

Advanced published their pricing and completely focused on value articulation. (18:55) Hamzah discusses many teams in the company were nervous about publishing their pricing but was a great success.

Hamzah talks about his hopes for the future at Advanced, specifically product-led growth. (22:10)

Marcos and Hamzah close out the show by discussing Hamzah’s favorite song growing up “Can I Kick It?” by A Tribe Called Quest.

Follow Marcos on LinkedIn

Get your copy Street Pricing: A Pricing Playlist for Hip Leaders in B2B SaaS here

Want a consultation? Email Pricing I/O at [email protected]

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.  

Today’s guest is Alyssa Higgins, who has been with CipherHealth for almost 10 years and currently works as their Vice President of Operations and Enablement.

Alyssa discusses how pricing at CipherHealth pre-COVID was very US-centric and how they realized things needed to change. (2:47) They wanted to make pricing more flexible to be able to help better serve their customers. The pricing didn’t align with who they wanted to be as a company and wanted to move to a more customer-centric pricing. They noticed there were issues when it took more than two weeks to price a deal. (5:51)

They were offering many types of packages and features, which was making the pricing take a while. (7:35) Alyssa tells Marcos about how they needed to simplify the process and talk to the customers to better understand how to serve them better. Alyssa led the project and partnered with Marcos’ team to change the pricing and went from a program-based model to a usage-based model. (12:05) A pricing committee was started at CipherHealth to keep moving and pricing the right model. (18:44) Marcos and Alyssa talk about how important it is to keep the pricing committee consistent in order to continue the success. (20:55)

Alyssa talks about the hopes for the future of pricing and packaging at CipherHealth and continuing to evolve and incorporate AI. (24:19)

Marcos and Alyssa close out the show by discussing Alyssa’s favorite 90s Hip-Hop song “Mathematics” By Mos Def.

Follow Marcos on LinkedIn

Get your copy Street Pricing: A Pricing Playlist for Hip Leaders in B2B SaaS here

Want a consultation? Email Pricing I/O at [email protected]

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.  

Today’s guest is Jose Miguel Dergal, who is Head of Product Growth at Canva. Miguel has worked at PayPal, Bill.com, Chime, and Invoice2go.

Miguel discusses his time at Invoice2go, and how he discovered problems with the pricing and features.

(4:33) He wanted to move to the ‘Good, Better, Best’ model. Miguel and Marcos how you can discover if you are giving too much or “too much in the free.”

(10:16) The two major parts to realizing this is:

1. Is it fair for this to be a premium feature?

Miguel tells Marcos about a twist that happened in the pricing model. (14:52) From this surprising twist they created their ‘Pro Plan’ and ‘Unlimited Plan.’

He talks about the recent pricing challenges at Canva. (23:41) They realized they were giving a lot more away for the free version of Canva to get people on board. They wanted to better serve different team sizes in their pricing and have some new and exciting things to come!

Miguel talks about his hopes for the future, specifically usage-based pricing evolving more. (27:21)

Marcos and Miguel close out the show by discussing Miguel’s favorite song today is “Dance Monkey.”  

Follow Marcos on LinkedIn

Get your copy Street Pricing: A Pricing Playlist for Hip Leaders in B2B SaaS here

Want a consultation? Email Pricing I/O at [email protected]