Discounting is a persistent challenge in B2B SaaS. That is not likely to change as there are good reasons to discount. Here we consider three ways that discounts can change over time.

In January we did a simple LinkedIn poll asking what will shape SaaS pricing in 2024. The results reflect the current zeitgeist but are we chasing the shiny new thing?

Usage or consumption pricing has been widely recommended by SaaS pricing experts over the past few years. How well has it been performing? How resilient will it be in a more challenging economy?

Join Paul Lachance from the Software Equity Group and Steven Forth from Ibbaka for a spirited discussion of how to craft and execute a winning pricing strategy and the impact this can have on valuation.

B2B SaaS will face headwinds in 2024 as buyers consolidate their SaaS solutions and insist that value be delivered. AI will transition from being a cool gadget to must have functionality.

Sometimes it is nice to sit back and just watch and listen. And webcasts and pod casts open the possibility of conversations. Here are the webcasts and pod casts that Ibbaka joined in 2023. Watch, listen, enjoy, comment.

Pricing is a critical business input and needs to be planned. Here is some guidance on how to plan pricing for 2024. Align Goals. Establish a baseline. Plan actions.

One of the most common questions that people ask Ibbaka is whether they should raise prices. B2B SaaS companies need to be careful about how they answer this question. The impact on Net Revenue Retention and usage needs to be considered.

Join Karen Chiang and Steven Forth on Wednesday November 29 for a PeakSpan Masterclass: Impacting 2024 Growth Through Pricing and Packaging. Join us at 8:00 AM Pacific, 11:00 AM Eastern.

The third and final step in planning pricing for 2024 is to explore the actions you could take in 2024 and build a pricing action playbook. This will allow you to move quickly as you execute on How to Win decisions. Speed is life.

The second step in planning pricing for 2024 is to align pricing with strategy. Pricing needs to support key performance indicators (KPI) and a direct connection should be established. Pricing should also take into account the growth motion and packaging pattern. Choice of a pricing method should also take place. Some companies are making ESG part of their pricing goals.

The first step in planning pricing for 2024 is to establish a baseline. A baseline is not a static number. It represents a trend. Do you want to maintain that trend in 2024 or change it? The trends you care about are both internal and external.

There are many different ways to come up with packaging and price: cost plus, competitive, willingness to pay, value based. Each motivates different decisions by the vendor. Over time, they will deliver different outcomes for the buyer. How a product gets priced is more important over the long term than the price.

Pricing needs to be at the center of business planning. It’s where all of the key parts of a business come together and asking hard questions about pricing should be central to business planning for 2024.

There are three main ways to implement value based pricing: approximate, derived and direct. The direct approach is the one that best aligns buyer and seller and that will maximise revenue long term. It can only be applied in certain situations though. Here we outline the three approaches and when to use them.

Ibbaka helps B2B SaaS companies package and price to optimize for growth. Solutions are delivered through Ibbaka Valio, a software platform to manage value and pricing models and to execute on value based pricing. Here is how Valio is priced.

On October 4th, PeakSpan and Ibbaka gave a webinar on Net Revenue Retention with Sanket Merchant, Srinivas Somayajula and Steven Forth. Here are some of the questions that came up and our answers, as well as a few additional observations.

The PeakSpan - Ibbaka survey on NRR performance has attracted a lot of interest. Here are five of the most common questions about the report together with the answers. Managing NRR is critical to SaaS performance.

Many consider GBB to the gold standard for SaaS packaging and pricing. This is not actually true, but it is a very useful approach for many SaaS companies. Its popularity has led to an anti-pattern, truncated GBB.

There is a growing move towards a zero discounting approach to pricing. Can this work for enterprise SaaS? What would be the benefits? Is there a downside?