The Pricing Roadmap: How to Design B2B SaaS Pricing Models That Your Customers Will Love by Ulrik Lehrskov-Schmidt

Author:Ulrik Lehrskov-Schmidt
Format: epub, azw3

List the things you are currently delivering.

Group them into categories—each targeting a specific customer budget.

Evaluate each budget owner’s expectation to pay for each line item in the category.

If a reference price exists in the market, note it. If it doesn’t, estimate as well as you can.

Some of these line items will have flat fees, some transactional, and some will have metrics attached to them. Use common sense and put yourself in your customers’ shoes when deciding.

The rule of thumb (which definitely has exceptions) is that the budget of your primary buyer should carry about 50–80 percent of the total price load. So if your ACV is about $500K a year, selling communication software to hospitals, load only the primary care budget with a relatively simple pricing model (e.g., a price per user, negotiated down). My estimate would be that you could add $100K–$500K of charges to the IT, HR, and other budgets in your customers’ organizations. Or, at least, add these extra charges to new customers you get through the door.

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