Manage episode 329167913 series 2971433
Pricing is part science, part art. And huge for profitability.
Jeffrey Tjiok worked with 25+ B2B Tech companies, many of them VC-backed unicorns.
👉 Here are 5 Insights from him on how to make pricing a game changer for you
with Jeffrey Tjiok on our Europe’s B2B SaaS Sales Podcast (1st comment).
1️⃣ Master your pricing toolbox to defend value
Many startups immediately rush into discounting.
Instead find out WHY the offered price seems too high.
Then offer value-add, low-cost items sequentially in the process.
2️⃣ Embrace long-term quid pro quo
Ask what you get in return instead of giving in to incumbents “kicking tires”.
Steer the discussion away from price towards focusing fully on value.
Frame concessions with a clear (time) limit, e.g. 1st-year discounts.
3️⃣ “Everyone’s responsible for pricing”
Pricing is one of the most cross-functional disciplines.
Product marketing has to tell a compelling story around the offering.
Sales needs clear pricing guidelines to close profitable, attractive deals.
This requires close alignment of the company’s leadership (CRO x CFO x CMO).
4️⃣ Your pricing needs to follow your business objectives
One of Jeffrey’s clients moved from volume- to revenue-focus and is now valued at $10B.
You need to decide first if growth, profitability, retention or win rates are most important.
As you scale quickly, getting pricing right is crucial to build a sustainable business.
5️⃣ Pricing can have a huge impact on profitability
Many Silicon Valley companies follow a “reach first, rich second” model.
If you’re a VC-backed, hypergrowth scaleup, that’s great.