.png)
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Based on our book, Price to Scale, it's important to strike the right balance between testing radical pricing changes and making incremental adjustments. Here’s how you can think about it:
• Direct Answer
Our approach is not a binary choice. Instead, we recommend experimenting with different pricing scenarios—sometimes exploring more significant shifts, and at other times making smaller, measured changes depending on the context and customer feedback.
• Insights from Price to Scale
– In our book, we explain that setting up multiple straw-man pricing scenarios is a key part of understanding how the market will respond. (See the discussion around scenario testing on page 221.)
– For many businesses, especially those not operating in highly commoditized or fixed-inventory sectors, incremental adjustments often allow for a more cautious evolution of pricing strategy.
– However, when you have strong insights or when market conditions change rapidly, testing a more radical change—albeit in a controlled way—can provide valuable feedback and clear signals regarding price sensitivity.
• Practical Application
– Start by gathering customer reactions using structured methods (like fixed trade-off screens or targeted probing questions).
– Use these reactions to iterate: if you see a sharp pivot in sensitivity, a more radical change might be justified; if reactions are mixed, consider adjusting incrementally.
– This dual approach helps to refine your strategy gradually while still leaving room for bold moves when warranted by clear market trends.
• Summary Takeaway
Price to Scale encourages an adaptable mindset: use the market’s feedback to inform whether you need small, incremental tweaks or if a more daring, radical adjustment is necessary. This approach helps mitigate risks while positioning your pricing strategy for scalable growth.