THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Pricing AI assistants for productivity suites: Survey Results
The results are in for our survey on price acceptance of generative AI productivity applications. See how much people are willing to pay.
Hugging Face and pricing for community led growth
Community led growth is one of the six growth motions that Ibbaka supports. A current and very exciting example is Hugging Face, the community for Generative AI. Hugging Face provides a great example of pricing for community led growth.
Microsoft puts a price on AI
Microsoft put a price on the AI option for Microsoft 365. US$30 per user per month for Copilot. This has triggered much comment and discussion. And it sent Microsoft’s share price up. We look at the reaction to this pricing and invite you to share your thoughts.
User pricing metrics update
‘Per user’ remains the most common pricing metric in B2B SaaS. But there many different ways to price users. One trending approach is active users. What are the emerging best practices in user based pricing?
How you do anything is how you do everything
Change is everything, and everything is changing. Nothing stands still. Observing the change and acting upon the insights is critical, especially in the dynamic world of SaaS companies. That is why we are adding a new analytics module to the Ibbaka Valio platform.
How to parse a pricing page
Pricing pages are the public face of SaaS pricing. Make a habit of systematically reviewing pricing pages to see what you can learn about your competitors pricing and positioning. Here is a nine step approach to reviewing a pricing page. Zoho Desk is used as an example.
AI pricing studies: Cohere LLM
Cohere offers an alternative Large Language Model and has a nice, clear pricing page. Let’s look at what Cohere’s pricing says about their offer and compare it with Open.ai’s published pricing for GPT.
Pricing and Generative AI
We are being swamped by generative AI content. This is one of the early use cases for generative AI and both large, well established, companies and start-ups like Jasper and Copy.ai are jumping in. Let’s look at how companies are innovating in this space and capturing the value of their innovations.
Evaluating your pricing performance with the Pricing & Value Diagnostic Checklist
The Pricing & Value Diagnostic Checklist serves as a valuable tool to conduct a rapid evaluation of your pricing performance and processes, enabling you to identify areas for improvement and take necessary corrective measures.
Unleashing the power of understanding in value and pricing
In the dynamic world of customer value and pricing, finding the right words to capture complex concepts can be a challenge. The term “grok” and why we implemented this to our LinkedIn newsletter - explore the origins of this intriguing term and why it resonates with our mission to unlock the true power of understanding in value and pricing.
Lessons learned from the Reddit API pricing kerfuffle
Reddit introduced API pricing in the spring of 2023. In many ways it was well motivated, but it generated a lot of community blowback and damaged Reddit’s reputation. What can we learn from Reddit’s experience?
Pricing Diagnostics and Rapid Response (PeakSpan Master Class)
Take control of your pricing with our upcoming Master Class with PeakSpan Capital. Our highly anticipated event is on “Pricing Diagnostics and Rapid Response” and will equip you with a practical action plan that empowers you to swiftly diagnose and take control of your pricing strategy.
A new take on SaaS metrics and pricing
Kyle Poyar at OpenView has proposed a new set of SaaS metrics to better measure Product Led Growth and diverse revenue streams. What are these new metrics? What do they mean for pricing design? Is Value to Customer (V2C) the missing metric?
SaaS grows up (and gets grown up pricing problems)
The SaaS business model has matured. With this maturity comes slower growth, more competition, more scrutiny by buyers and procurement and the need for better price management and customer value management.
Pricing is an open game
There are many ways to think about pricing as a game. One that helps us align pricing with innovation is the open game. What does it mean for pricing to an open game? How does it change how we build pricing capability?
The Ethics of Pricing AI
We will be making extensive use of AI in pricing. In fact, we have been using some form of AI for many users as revenue management and pricing optimization engines are based on one form of AI or another. By the past year feels different, and the next three years will be different. What are the requirements for the ethical use of pricing in AI?
Prioritizing NDR growth choices
With six levers to use to improve NDR where should you focus your effort? Make sure churn is under control then look for where you can have the biggest impact.
Why You Should Use Value Stories Instead of Conjoint Analysis for B2B Pricing
More and more B2B business are using conjoint studies to inform packaging and pricing. But conjoint studies were originally designed for B2C and caution is needed in extending them to B2B. Structured interviews using a value story can provide more actionable insights.
NDR Growth Tactics 6: Managing Churn
The sixth NDR lever is churn management. Churn is the great enemy of SaaS businesses and understanding why churn is happening and how to reduce it is a critical part of managing a SaaS business. Churn is the denominator in the equation for customer lifetime value.
NDR Growth Tactics 5: Reduce Package Down-sell
The fifth NDR lever is reducing downsell, where customers move from a more expensive to less expensive package. How can one avoid this, or at least minimize the impact? We explore this challenge here.
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