Pricing and Packaging Strategy for SaaS and Technology Companies

Value-based pricing means charging for the unit your customer already uses to describe their own operation, rather than the unit that is easiest for you to meter. Most pricing problems in B2B software are not that the price is too low. They are that price and value have drifted apart, so some customers subsidise others and nobody has measured it.

The fix is usually structural rather than a percentage increase. In our published worked example, repricing lifted ARR 18.9% while 47 of 84 accounts paid less than before.

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What we buildWhat it’s worth

Six capabilities on one axis, from the first decision about what to build through to the figures that defend it in a board meeting.

When companies call us

The conversation that keeps restarting

Portfolio

“Usage keeps growing but our margins don't.”

Adoption

“Discounting is negotiated deal by deal and nobody can defend the pattern.”

Pricing

“Pricing hasn't been revisited since the product changed.”

Sequence

“Our biggest customers are our least profitable ones.”

Economics

“We need to reprice before renewal season and cannot risk churn.”

And usually

“We have been going round this for months and keep starting the argument again.”

The engagement

What we look at, and what you keep

What we analyse

Every account, mapped by what it pays against what it actually consumes
Price dispersion across the book, and which cohort is subsidising which
The value metric your customers already manage their operation by
Contribution margin and cost to serve, line by line
Discount patterns, and whether they follow policy or personality
Churn risk on every account facing an increase

What you receive

A new price book, with fees set so the curve is continuous at every plan boundary
An account-level migration schedule with increases capped per renewal
A discount approval policy by band, replacing negotiation by argument
The revenue bridge, modelled over three renewal cycles
Scripts for the ten hardest customer conversations

Worked example

Price was set per seat. Value was delivered per job.

Six years of seat discounting left the largest accounts paying ₹36 per job while the smallest paid ₹89.

Read the worked example

Composite company · illustrative · no client data

How long it takes

Two-week diagnostic, or 8–12 weeks including migration design and rollout.

Who it is for

B2B software and technology companies with enough accounts for dispersion to be measurable, typically from around forty. Also relevant to services businesses priced per seat or per head.

We do not recommend a uniform percentage increase. It is fast to decide and it raises prices on exactly the accounts most likely to leave.

Related services

Common questions

Pricing & Packaging, in practice

How do you choose the right value metric?

By listening to how the customer describes their own operation. If they measure themselves in jobs processed, documents handled or transactions cleared, that is the metric. Seats are convenient to bill and are almost never the thing the customer values.

Will repricing cause churn?

It can, which is why the migration schedule matters more than the price book. We cap increases per renewal and apply reductions immediately. In our worked example that meant more than half the accounts paid less, which is what made it possible to raise prices on the rest.

Usage-based or seat-based pricing?

Whichever tracks the value delivered. Seat pricing works while seats and value move together. It breaks when a customer with few seats runs enormous volume, or a customer with many seats barely uses the product. A hybrid — a platform fee plus a declining usage rate — usually holds better than either alone.

How long does a pricing engagement take?

Two weeks for the diagnostic and the recommendation. Eight to twelve weeks if we design the migration, the discount policy and the customer communications with you.

Do you work with pre-revenue companies?

Rarely, for pricing. Without a book of accounts there is no dispersion to measure and the exercise becomes guesswork dressed as analysis. Early-stage companies are usually better served by our product strategy or fundraising work.

Tell us the decision you are facing.

A short paragraph is enough. Where another firm would serve you better, we will say so and suggest one.

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