Bill Wilson is the CEO of Pace Pricing and a seasoned expert in B2B SaaS pricing, having coached over 400 companies to refine their monetization strategies. We spoke about the art and science of pricing, unpacking how it’s less about picking a number and more about aligning with customer value. From overcoming founders’ pricing anxieties to crafting effective packaging models like good, better, best, Bill shared actionable insights grounded in data and customer understanding.
The conversation illuminated why pricing is a powerful growth lever. Bill emphasized, “Pricing isn’t about how much you charge, it’s about how you charge,” highlighting the need to focus on packaging and value delivery over arbitrary price points. For SaaS founders hesitant to tweak pricing, especially for existing customers, he offered a clear path forward: use data to build confidence. “The best way to build confidence in your pricing is through data,” he said, advocating for analyzing customer usage, segmentation, and jobs-to-be-done to create a pricing strategy that feels natural and defensible.
We explored various pricing models—good, better, best, use-case-based, and platform-plus-extensions—and their fit for different customer sophistication levels. Bill cautioned against over-relying on per-user pricing, noting, “Per user is a bit dangerous… we are essentially tying our product to our customer’s most expensive resource, which is hiring a new person.” Instead, he championed hybrid value metrics, like the number of appointments in a booking software case study, which led to a 25-30% ARR increase for one client.
What stood out most was Bill’s practical, step-by-step approach to pricing projects: start with subscription and usage data, talk to customers, map jobs-to-be-done, test pricing sensitivity, and validate with both existing and new customers. His advice to “use the data you have” and avoid chasing perfect information was a refreshing nudge to action. For founders stuck in pricing paralysis, Bill’s message is clear: “When it’s done, every founder I’ve ever worked with has always said it was worth it.”
Key Takeaways:
- Value Over Numbers: Pricing should reflect the job your customer hires your product to do, not just a dollar amount.
- Data-Driven Confidence: Use subscription and usage data to craft a pricing strategy that reduces anxiety and aligns with customer needs.
- Smart Packaging: Good, better, best works for most SaaS companies, but consider use-case or extension models for complex or enterprise clients.
- Value Metrics Matter: Move beyond per-user pricing to capture value tied to usage, like appointments booked, to drive revenue growth.
- Test and Talk: Validate pricing changes with customers—new and existing—to ensure acceptance and minimize churn.
Bill’s insights are a masterclass in turning pricing from a nerve-wracking gamble into a strategic asset. Whether you’re a SaaS founder or a pricing enthusiast, this episode offers a blueprint to “install good pricing practice” and unlock growth.
