Famous last words: “We tried to keep our pricing simple.”
Every founder we meet says they want ‘simple pricing’. However, what we usually find is a one-size-fits-all pricing that’s impossible to scale.
Simple pricing is good. But too many B2B SaaS companies mistake simplistic for simple.
For example...
Case I: a €100K quote consisting of 100 licenses at ~80/user/month is not simple. It’s simplistic.
Why simplistic: (1) the buyer is going to demand a discount of >40% and (2) not all users are going to derive the same value.
Case II: a €15K quote for unlimited users is not simple. It’s simplistic.
Why simplistic: (1) impossible to grow this customer over time and (2) it’s unclear which budget holder pays for what.
Simplistic pricing doesn't mean you're losing deals, but it sure as hell means you're leaving money on the table.
Signs your pricing might be simplistic:
❌ Fewer line items than necessary
❌ No connection between line items and value creation
❌ Unclear for buyer which budget holder is paying for what
❌ No possibility to grow the customer over time
“We tried to keep our pricing simple.”
So, how do you go from simplistic to simple pricing?
Successful companies understand that storytelling doesn’t stop at the proposal stage. Your proposals and quotes have to tell the story of how you plan to create value for your buyer and how you’re planning to capture it.
Simple pricing explains (1) what the buyer is paying for, (2) why they’re paying it, and (3) which budget holder is responsible for which part. Lastly, it needs to be clear how this customer might grow over time.
Some tips that will help you move from simplistic to simple:
Introduce multiple layers - this will ease negotiation and discounting
Split user licenses based on roles: power-users, managers, admins, etc. - this will show budget holders who pays for what
Add usage-based or outcome-based variables - incentive and path to grow usage
Add fixed platform fees to promote volume - promotes volume purchases
Even implementing just one of these tips can increase your contract value by 20-40% if done correctly. Implement them all and you might just double your revenue in 2025.
Signs your pricing might be simple:
✅ No more AND no fewer line items than necessary
✅ Every line item connected to value creation
✅ Each budget holder knows what he/she is paying for
✅ Clear path for growing your customer over time
"Simple pricing tells a story."
Want to learn more about SaaS pricing and packaging? Follow Money on the Table or schedule a free consult at https://revfixr.com/contact
Tjitte Joosten is the Founder of RevFixr, the one-stop shop for better monetisation of your customer base. RevFixr turns pricing into your biggest growth lever. Prior to founding RevFixr, Tjitte was responsible for the commercial strategy and operations at tech companies like Docfield and Experfy.
