Why I’m Scared to Buy New SaaS Apps Now
So many of you may find this ironic on SaaStr, but I’m scared to buy new SaaS apps today. Genuinely. Why? Let’s make a list. But the uber-reason is buying and renewing has in many cases gotten much less customer-friendly than it used to be. With one big exception:...
Will Buyers Ultimately Pay More for AI? Vendr’s Data Says … Maybe Not
So will buyers really pay more for AI? Or will they expect it to be included in the already in many cases expensive purchase price for the core product? We’re still learning. On the one hand, many players in the support space have clearly been able to charge...
Dear SaaStr: How Do You Price a SaaS Product in a New B2B Market?
Dear SaaStr: How Do You Price a SaaS Product in a New B2B Market? I’ve lived it. It’s not as complicated or as hard as it sounds. The simplest answer is usually to copy the pricing from the closest public company or other break-out leader you can find that is...
Dear SaaStr: What is a Good Refund Policy for a SaaS Product?
Dear SaaStr: What is a Good Refund Policy for a SaaS Product? SaaS startups, especially those that sign customers to annual customers, will have customers that want to cancel those un-cancelable contracts and get a refund. Even customers that pay monthly on credit...
Dear SaaStr: Which SaaS Products Offer ONLY Annual Pricing?
Dear SaaStr: Which SaaS Products Offer ONLY Annual Pricing? Many of the companies I’ve invested in only offer annual pricing. The common denominator is: they are products that require some real business process change to achieve the value from the product. and that...How to Leverage Pricing and Packaging to Drive Growth, Revenue, and Profit with Miro, Loom, OpenAI, and Splunk
Executives from Miro, Loom, OpenAI, and Splunk share how SaaS product pricing can become a strategic to drive product adoption and revenue growth.
Dear SaaStr: Should We Allow Refunds in a Multi-Year SaaS Contract Paid Upfront?
Dear SaaStr: Should We Allow Refunds in a Multi-Year SaaS contract Paid Upfront? Let me add a slightly controversial answer. If you’re still a startup, then I’d say — Maybe. If pushed. If it’s important to the deal, when signing. And maybe,...
Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual?
Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? I think this is a topic where you get a lot of bad advice. Annual contracts combined with prepaid cash are a huge benefit, when done right: You get all the cash up-front (this...
Dear SaaStr: Can We Add Termination Charges for SaaS services?
Dear SaaStr: Can We Add Termination Charges for SaaS services? Some older companies do this. In fact, we were recently handed a bill like this for a 20+ year old SaaS product bought out by a PE firm. And really, an “auto-renew for another year without notice” clause...
Dear SaaStr: What’s a Resonable Discount for an Annual Contract? How About a 3 Year Contract?
Dear SaaStr: What’s a Resonable Discount for an Annual Contract? How About a 3 Year Contract? First — you don’t want a true net discount at all. What I mean what you want is a pricing structure that anticipates discounts so the net effect is revenue positive....
73% of You Raised or Are Raising Prices in 2024
Are we through the endless price increases we saw in 2023? Apparently not. A stunning 73% of you are raising prices in 2024. That’s up from 54% in 2023. Personally, I’m a fan of only raising prices if you’ve earned it, and focusing on raising prices...
What’s the #1 Most Important Thing in Pricing A New SaaS Product?
Dear SaaStr: What’s the #1 Most Important Thing in Pricing A New SaaS Product? I think the #1 thing to think about is context. COO Brad Lightcap says OpenAI's pricing model wasn't planned. It was just him and Sam Altman vibe mathing. “$20 sounds good? Okay....
A Look Back: Slack at The First $30,000,000 in ARR
As we gear up for SaaStr Europa 2024 in London on 4-5 June and SaaStr Annual 2024 in the SF Bay Area on September 10-12, we wanted to take a look back at some of our most iconic speakers and sessions from over the year, that we can still learn from today. Back at the...
