AI is changing what we price. That is the theme of our April 26 talk at the Professional Pricing Society conference in Chicago. But it is also changing how we price. Let’s open up our thinking and explore different ways we could apply AI to pricing.

Total Cost of Ownership (TCO), Return on Investment (ROI) and Value are ll used in price setting an justification. How are these related? Which approach works best? A value model is at the heart of a successful value program and critical to managing churn.

Churn is the first of the six Net Revenue Retention Levers to look at. Begin by understanding the natural rate of churn for your solution. If you are above the natural rate of return, then churn is where you need to focus. Ibbaka can help you use value and pricing to reduce churn.

SaaStr recently had a series of interesting posts on pricing. One of them tells the story of a new CRO justifying price increases because of higher costs. Is this ever a good move for a SaaS company?

Many companies start worrying about pricing when they encounter a symptom that they associate with a pricing problem. A classic example is churn. But pricing is only one of the possible causes of churn. Trying to fix churn by changing pricing will only work in certain circumstances.

NRR is the critical metric for SaaS companies and measures the organic growth from within the customer base. There are different ways to drive NRR: reduce churn, grow revenue with current customers and discourage revenue shrinkage. As we near the end of Q1 2024, what are SaaS companies prioritizing?

One of the factors that determines willingness to pay (WTP) is perceived fairness. In this post Edward Wong looks into what companies need to do to make there their pricing is seen as fair.

Should B2B SaaS contracts include automatic price increase? Ibbaka shares poll results and gives some guidance on if and when to include such a clause.

Churn sucks the life out of SaaS business models. In this PeakSpan Masterclass Karen Chiang and Steven Forth will diagnose the root causes of churn and how to use packaging and pricing to reduce churn and improve Gross Revenue Retention (GRR).

When should you sell your SaaS business? What will determine the value? How important is Net Revenue Retention? How is AI and generative AI changing the environment? Get insights from David Rowat of Strategic Exits.

Discounting is a fact of life in B2B SaaS. If you are going to discount, how should you do so? A fine grained approach can pay big dividends. First unpack discount to reflect the structure of your offer. Then repackage discounts to align with your business strategy and how you negotiate.

The layering in of AI has led Box to adjust its pricing. What can we learn from this that will help us to price other AI powered solutions?

Our thoughts on what to price, products, use cases or value paths seem to have struck a nerve. We did a LinkedIn poll on this theme and got more than 300 responses in 24 hours. Pricing of value paths is much more common than we expected.

Pricing is often divided into product pricing or services pricing. This is too simple an approach for companies that provide solutions to complex problems. Use cases and value paths can be a more compelling approach to pricing for companies that do more than sell a simple well defined product.

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.

RAGs or Retrieval Augmented Generation archiectures are becoming a common approach to the design generative AI. They tend to require more context in the prompt changing the cost dynamics. How will this impact their pricing?

We had the pleasure of speaking with Dick Sobel, a seasoned professional in the field of pricing, as he shared his journey from the mid-90s to PricePoint Partners. Dick delves into the intricacies of pricing Acuity and sheds light on its applications in the market. Join us as we explore his perspectives on the evolving landscape of pricing, the impact of AI, and advice for those considering a career in this dynamic field.

SaaS vendors are used to high operating margins where costs are a minor consideration in pricing. AI is changing this. AI is expensive to develop and to operate. Will this change pricing models?

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?