SaaStr 211: The Ultimate Guide To SaaS Pricing From Investors @ Benchmark, Matrix, Upfront Ventures & Operators @ Figma, Snyk and Kustomer
The Official SaaStr Podcast: SaaS | Founders | Investors
Takeaways from Salesforce's hyper growth scaling and its pricing strategy
One insight from Mark Seusser at Upfront Ventures is that Salesforce had a different pricing mentality than what is typically taught. Instead of pricing low and upselling later, Salesforce priced high and offered discounts. The two reasons for this approach were the psychology of buying and the desire for customers to feel like they got a discount. Even if customers were still paying a high price, the perception of getting a discount made them feel better about the purchase. This insight highlights the importance of understanding the psychology of buying and the value of perceived discounts in pricing strategies.
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