THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Two pricing-packaging responses to platform commodification
Every successful platform eventually sees its core functionality get commoditized. There are two completely different strategic responses: 1. separate new high value functionality from the platform or 2. use the new high value functionality to defend the platform price. Be clear which approach you are taking as one can cancel out the other causing both to fail.
Pricing and sales volume part 2 - mechanics
Given that unit price will change with volume for many products in many markets, how does one design a pricing model that takes this into account. There are several design choices to make. Getting these wrong will suck profit out of your revenue.
How pricing can help fix NDR challenges
Net Dollar Retention (NDR) or Net Revenue Retention (NRR) is a key metric that investors are using to measure the health of their portfolio companies. Pricing and packaging has a big impact on this metric, but not always in the ways one expects. How can pricing help improve NDR?
Four years of Pricing Transformation predictions from Kyle Poyar and Steven Forth
Beginning in 2020, Kyle Poyar from OpenView Ventures and Steven Forth from Ibbaka have been making predictions about how pricing will transform in the coming year. Our predictions for 2023 came out on January 12. Here is a summary of how our predictions have evolved over 4 years.
Pricing and sales volume part 1 - framework
Pricing and sales volume part 1, a general framework for understanding how and why price changes with volume and how to design pricing that responds to this. The design of pricing to volume relationships is a big part of pricing model design. Part 2 will look at the mechanics of different ways to align unit price with sales volume.
Is SaaS price inflation a real thing?
SaaS price inflation began to surface as a meme in late 2022. Early in 2023 it seems to be taking hold as many SaaS companies move to raise prices in response to inflation. This has provoked pushback from some buyers. Is SaaS price inflation a real thing? If so, what does this mean for pricing in 2023?
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