The SaaS Podcast: Build, Launch & Scale Your SaaS 210: SaaS Pricing Strategy: Top 5 Mistakes To Avoid - With Kyle Poyar
24 snips
May 27, 2019 
Kyle Poyar, VP Marketing Strategy at OpenView, discusses SaaS pricing strategy, the importance of pricing for SaaS companies, and avoiding common pricing mistakes. He shares examples of successful pricing strategies, the impact of pricing on revenue growth, and the importance of having a seamless way to land new customers. The chapter also covers how to improve pricing strategy and highlights the five common mistakes in SaaS pricing. In addition, they delve into a potential business idea and the guest's background in environmental studies and passion for Mediterranean cooking.
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Pricing Is Mission-Critical Across Stages
- Pricing matters early because monetization determines whether you can build a sustainable business and raise capital.
- Pricing also remains one of the fastest, most profitable growth levers for later-stage SaaS companies.
Stop Being Too Cheap Early On
- Test higher prices early instead of defaulting to being cheap.
- Increase in small increments and roll back if conversion drops significantly.
StatusPage Raised Prices Successfully
- StatusPage launched extremely low and repeatedly raised prices without harming conversion or churn.
- Each increase boosted ARPU and helped them scale to $2.5M ARR before acquisition.