I have referred to Jason Cohen a few times this year as I read his blog at asmartbear.com. Jason is the founder of WP Engine and has quite a track record. As we try to fine tune our pricing in this piece in reference he talks about the pricing positioning – one that could potentially help you 8X your price. Super tempting.
What is the right price? Are you charging too high leading to fiction in conversion, long sales cycles thereby reducing the revenue velocity? You need to closely examine if the extra per deal is worth it in terms of the friction it adds to the sales process.
Jason Lemkin, Founder SaaStr in a recent Q&A addressed this question. The pro for the selling organisation is obvious. Predictable revenue – irrespective of usage. But is it sustainable and will users continue to pay based on this model? He raises important questions like : “….
….and more.
