Slides by Ulrik Lehrskov-Schmidt, B2B SaaS Pricing Expert Watch the Startup at www.psvacademy.dk

1. CRASH COURSE
B2B SaaS Pricing & Packaging
PreSeed Ventures Webinar
October 7th 2021 – Ulrik Lehrskov-Schmidt
These materials are the intellectual property of Behavioural Strategy Associates ApS and may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement.

2. BIG QUESTION:
HOW DO YOU PRICE YOUR PRODUCT ?

3. Transactional Revenue:
Services, change
requests, certifications
etc
Start Cost
Basic Subscription Fee
Exit Cost
Metric-based subscription fee
Metric based Add-Ons
Basic Add-Ons
Fees
Customer Lifetime
REVENUE
SAAS PRICING ARCHITECTURE
THE ELEMENTS OF XAAS REVENUE

5. Problem:
How do you ‘Price Discriminate’
between customers?

6. THE TRANSCONTINENTAL RAILROAD
PRICE DISCRIMINATION PROBLEM
Willingness-to-Pay
2nd Class
Optimally
priced
1st Class
Underpriced
3rd Class
Priced Out of the
market
Single Undifferentiated Ticket
Invisible Loss
1st Class
Optimally
priced
1st Class Ticket introduced
w. dinning wagon access
How do we
create a 3rd class
experience?
1st Class
2nd Class
3rd Class

7. Guess which wagon is 3rd class..

8. KEY TAKEAWAY:
DON’T PRICE YOUR PRODUCT.
PRICE YOUR CUSTOMER.

9. PRICE DISCRIMINATION
THE TWO MAIN TOOLS
Product Model
‘How’ – not ‘How Much’
Pricing Architecture: Metrics, Flat fees, non-recurring fees
Wallet Structuring: Target specific customer budgets (e.g. IT).
Portfolio Pricing: optimize prices to ‘guide’ customer purchase
What is for Sale – to whom?
Packaging: Tiers, Modules, Add-Ons.
Services: Onboarding, Expansion, Information,
Managed
Pricing Model

10. FENCING
PACKAGING
CAPABILITY
PRICING
MODEL
PRICE POINTS
RAILROAD: from A to B
PASSENGER FREIGHT
#MilesDriven,
- increasing
w. ticket class
Individual pricing principles
for each add-on
#MilesDriven,
#CubicFoot
#Weight
- Across goods types
Add-On’s:
• Dining
• Reservations
• Bulk luggage
Ticket Classes:
• 1st
• 2nd
• 3rd
Add-On’s:
• Loading
• Customs
• Etc
Goods Types:
• Bulk
• Dangerous
• Perishable etc.
$5 + $1 per mile
$15 breakfast
$1200/20ft
container/100miles
+ $64/ton over 5metric /
100 miles
Insurance: 0.5% of
goods value

11. B2B SaaS Pricing – Do this:
1. Fence: is it easier and simpler and more profitable to create two or
more product & pricing models instead of just one?
2. Package: define bundles. One ‘Job to be done’ for every bundle. Make
sure there is clear demand for each. Design the Expansion Journey.
3. Pricing Model: Start with a core pricing metric that is both 1) fair and
2) profitable. Adjust with flat fees, discounts and Service fees.
4. Price Points: Set price points. If they sell: raise them.
5. Listen for ”The Quality of the ‘No’ “ : when customers tell you no,
find out why: is it the structure they say no to or the price level?
B2B SAAS PRICING
THE CRASH COURSE ‘HOW TO’

12. Ulrik Lehrskov-Schmidt
LI: linkedin.com/in/ulriklehrskovschmidt/
T: (+45) 2714 4127
E: ulrik@willingnesstopay.com
To Learn More:
www.WillingnessToPay.com
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3. Coming Soon: Pricing Design Sprint – starting January 4th
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