Almost Every Pre-AI Vendor We Use Is Raising Prices for Agent Access. They May Be Building an Agentic Death Spiral
Almost every pre-AI B2B product we use has now told us they’re raising prices for agent access. Salesforce and HubSpot are the two latest, and they’re doing it differently. HubSpot’s increases are mainly for their own agents: Breeze credits,...
Dear SaaStr: Does Freemium Always Work?
Dear SaaStr: Does Freemium Always Work? No. Freemium and PLG models don’t always work. And sometimes, they only work partially. "For Freemium and PLG to work at scale, you probably need millions of folks to use your product. If it's 1000's … then go...
Dear SaaStr: Should I Publish My Pricing?
Dear SaaStr: Should I Publish My Pricing? If you aren’t sure — then yes. Transparent pricing has many advantages: It makes the sales process simpler. It allows prospects and leads to do more discovery work on their own. And it places your app in pricing context with...
How to Price Your Product in the Early Days (Hint: It’s Actually Easy)
Dear SaaStr: How Do I Price My SaaS Product in The Early Days, Before Product-Market Fit? Just start with comps. With comparables. Software is very expensive to build, but for the most part, costs almost nothing to ship. It might cost you $0.10 a month in hosting...
On Your Next Big Deal? Double Your Pricing.
"Want to go upmarket? Then double your pricing on your next deal. Not on your existing customers. They bet on you. But if your biggest customer is $10k today, try charing $20k to the next one. You'll learn. Fast." pic.twitter.com/bVTHLO5pkM — Jason...
Do You Have a “Pricing Gap” Holding Back Sales? Many Do
So recently we had a B2B buying experience that led to a No that is very common but many don’t realize is there, or at least is there that much: A B2B Pricing Gap We went to buy Riverside, a podcasting tool, after years of being on Zoom. We wanted to move to...
If Nothing Else – Segment Churn. You’ll See Patterns and Learnings You Wouldn’t Otherwise
Churn is not a GAAP metric. It doesn’t have a universal definition. Public companies and startups all seem to define churn differently. And even hide it in part, by doing so. I learned this myself starting out as a B2B CEO. I compared us to the only public...
Dear SaaStr: When Does It Make Sense to Price Low in the Market?
Dear SaaStr: When and how should SaaS startups offer reduced pricing vs the competition? For most B2B apps, you want to at least start with “just right”, Goldilocks pricing: #1. Too high a price, and you start to add friction to the sales process. Deals take longer,...
Salesforce Now Has 3+ Pricing Models for Agentforce. And Maybe Right Now, That’s The Way to Do It.
Salesforce has now shipped three different pricing models for Agentforce — in roughly 18 months. First, $2 per conversation when they launched. Then Flex Credits at $0.10 per action in May 2025. And now per-user licenses starting at $125/user/month with what Benioff...
Dear SaaStr: How Do You Change the Price of Your SaaS Product Without Upsetting Existing Customers?
Raise prices on existing customers,Doesn’t help if you are growing quickly. Just makes them unhappy. Raise prices on new customers,Forces you to deliver more value. Often makes everyone more happy. — Jason ✨👾SaaStr.Ai✨ Lemkin (@jasonlk) April 7, 2022 Dear...
Freemium is Back — The AI Edition! But You’ll Still Probably Need 50 Million Active Users for Freemium to Actually Work as a Business Model.
“For Freemium and PLG to work at scale, you probably need millions of folks to use your product. If it’s 1000’s … then go sell it.” Freemium is back. In fact, it’s never been bigger. The Age of AI is build on freemium. ChatGPT is the...
The $7,500 Migration Fee That Just Cost a Vendor $80,000 ARR. Really, $240,000.
I almost switched vendors today. After many, many years with our current solution, I was ready to make the jump. New vendor lined up. Budget approved. $80,000 a year contract ready to sign. Then I saw it: $7,500 migration fee. And just like that, the deal died....
Gartner: Enterprise Software Spend Will Grow a Stunning 15.2% Next Year. But Most Of That Will Go to Price Increases and AI Apps
Software spend will accelerate to a stunning 15.2% in 2026 per Gartner. It will remain the largest and fastest-growing segment of the $6 Trillion enterprise IT spent. A massive number with record growth – the biggest growth rate in the entire IT market. But before...
The Great SaaS Price Surge of 2025: A Comprehensive Breakdown of Pricing Increases. And The Issues They Have Created for All Of Us.
2025 has become the year of aggressive B2B pricing increases, with legacy and older vendors across the board pushing through some of the steepest hikes we’ve seen in years. So far, SaaS pricing is up by approximately 11.4% compared to the same time in 2024—a...
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