SaaS companies have typically had high gross margins and have seldom considered costs when designing pricing. Is that still sustainable in the changing economic climate? When designing pricing, test to see how value, price and costs change with scale and make sure that your pricing stays aligned as you grow.

Gerry Smith is one of the people who has shaped how we think about pricing. This post covers the 4Cs of pricing: Customer Value, Customer Willingness to Pay, Competition and Costs. The 4Cs interact with each other and we tease out some of the ways this happens.