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FAQ’s

Frequently Asked Questions

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Other consultants sound the same, how are you different?

None of the other premier consultants have actually implemented complex pricing within companies like Twilio and Zoom. This requires operational systems understanding, not just strategy.

In addition, other consultants often "over egg the pudding", they know customers will buy approaches as long as they look/feel scientific, yet we have multiple customers who have spent more >$100k each on conjoint analysis which did not help them at all. We are careful with where we ask you to spend your money.

How do you identify the willingness to pay for B2B SaaS products?

Willingness to pay is context-dependent and works best when analyzed alongside packaging and pricing metrics. We use structured surveys like Van Westendorp, Max Diff, Conjoint Analysis as well as in-person research interviews to gather actionable data.

What is the future of SaaS Pricing?

The cost of milk or a McDonald's burger inflates. However, SaaS prices almost always deflate and requires both adjustment of product packages as well as innovation to remain relevant.

Additionally, AI adoption will drive a shift from user-based pricing to more usage/consumption based models to accommodate the very high costs of serving these products. Expect to see deflation over time here as well as the the cost of serving AI products drops by multiples every month.

How do you monitor packaging performance?

We want to monitor discounting % per package, usage of features within the packages, upsell rate of features to see whether we have a good pricing motion or whether it needs adjusting.

Tell me more about your experience.

The Monetizely team has over 28 years of collective experience in software pricing, having previously worked with industry leaders like Twilio, Zoom and DocuSign, ensuring expert guidance in SaaS pricing strategies.

Should we split test our pricing?

We recommend doing a better job on the pricing testing phase and to mitigate risk roll out the pricing in a phased manner.

For 80-90% of cases, we do not recommend A/B testing as that creates too much market confusion and overhead (in certain cases, doing an advance roll out in a different geo can work).

What is the role of competition in pricing?

Competitive information is helpful but only a small piece of the picture. Competitors are in different stages of growth. Their product functionality is also different.

We recently had a client where sales teams pushed for lower pricing to compete with current rivals, but the company’s strategic vision aimed to evolve into a new category, making the competitive pricing data less relevant.

How can businesses get started with optimizing their SaaS pricing?

To kickstart your SaaS pricing optimization, consider consulting with the experts at Monetizely. You can also deepen your understanding by reading our book "Price to Scale" and enrolling in "The Art of SaaS Pricing and Monetization" course on Maven. These resources are crafted to equip you with the necessary skills and knowledge to refine your pricing strategy effectively.