PriceIntelligentlybySBI2025StateofSaasPricing ReportPart1:10 Insights for BuildingMarket-LeadingPricing
ContentsPridina:TheMostImportant(and Misunderstod)SaSGrothLe.v........TheData.BuildMarketLeadingPricing&Padaging:10InsightsandRecommenIati....1.SophisticatedPricingisaMust-Havebv$250MARP2. ComplelityistheRule. Not the Escention -Pricina Does NotCetSimdlrby Deaulh4.TheresNoPerfetHomeforPricing5.FindingtheRightPriceistheHardestPartofSaSPicing6. Most Imprctu(ButLeastUsed)Pringlnput1Outcomes-Based Models areStill a PricingPipeDream8.PureUsage-BaredPingaOficalyCompises20%orSsasgi10.Internal AlionmentistheKeytoEffectiveAlMonetizationHowto RevampYourPricingfor.2........................................16
Pricina: Ihe Most Important (andMisunderstood) SaaS Growth LeverIfyou'renotoptimizingpricingin2025, you'reignoringoneofyourmostimportantleversforrevenueretentionandexpansion.98%ofanalyzedSaScompanieshavesome internalpicingfunctiontoday.Howeve,nearly60%ofthesecompaniesstillfindpricingoverlycomplex. leadina tomuddled strateaies and missed opportunitiesThe result? There's huge arowth potential and competitive upside for SaaS companies that actually understand pricing andcanexecute an effectivestrategy.Butwhatdoesagoodpricingstratecy looklike?Whattacticsare workingatsimilarysizedcompanies?HowareSasWesurveyed 321SaaSoperatorsand executives- all of whomownorinfluencepricing decisions-todigdeepintatheseandotherchallenges,Don'tsettleforpricingmedicrity.Thesearethe 10pricina insightsandrecommendationsfrom the2025StateofSasPricina Renort to helo vouimolement a best-in-class pricing strategy
The DataBelowisthe breakdownofresponsesfrom 321SaSoperators andexecutiveAnnualRevenueCompanyFundingTargetCustomerBoct-strappe349s50M-$500MPE-backePrimany26%PricingFunctionGroupFunction:'Wehaveagroupofpeopleforwhompricingispartoftheiresponsiblilies,NoFunctionSeniorLeader: Wehave aseniorleader(CM),etc) forwhompricingispartof theirrole.PricingLeaderundtion Dedicated Team:We have more than one person whois47%specicalypesponsibhe for pricingstategy12%Committe:Wehaveaforalpicingcommiteethatmetsregulalytodetermine pricing strategy,14%PricingLeader.WehaeonepersonspercicllyDedicatedTeamresponsible for pricing strategy (Director ofPricing, etc.SeniorLeaderNo Function:Wedon'thavespecilicpeopleorteamsresponsibleforpricingstrategy.
Build Market-Leading Pricing & Packaging;10Insiahts & RecommendationsSophisticated Pricina Isa Must-Haveby$250MARRTLDR:SaSComaniesat$50-250M/ARearesildeopingtherpicingmusce-withmorethan50%usingan'AdHodor 'Emerging" approach. However that switch flips at $250M-nearly 70% of the market above this threshold have, atleast,"Defined"pricingsophistication.Ifyou'eabove thisevenue thresholdand sil buildng, you 'e behindPricingSophisticationbyRevenueUnder$250MOver$250M40%30%20%41%38%26%10%19924%18%13%0%AdHocEmergingDefinedStrategicOptimizedRESEARCHHIGHLIGHTSStrategicPricingPrioritiesWeakedopeatorstohighlight hercompany'sapproachtopicingandpackagingacordingtoLevel5:Optimizedfive levelsofsophistication:Increasing PridingSophisticationWelksoakedopeabrstfo.thirleadingstrategidpricing priority in 2025. Ascompanies'pricingapproachgrowsincreasingl sophistiate...
