Dear SaaS Peers, Scale Value and Not Usage (It’s Not as Simple as You Think)
Value-based pricing – one of SaaS’s most favorite (and sustainable) pricing schools of thought. Conventional wisdom says that if you tie the price you charge for your product to a value metric that aligns with your product, then you’re set for success. However, can any value metric that aligns with your value give you a healthy revenue model? Or do the revolutionary revenue models of Michelin, Google, et al. possess something more? How does this play out in SaaS pricing? If the core value of your SaaS is intangible (like better team collaboration, increased productivity, etc.) how do you tie back your pricing to that value? This post aims to answer all these questions and more.