The Basics of Quantifying All the Value Value Stacks are the bridge between the 1-sentence pitch (alternatively ‘jobs statement’)and an actual price. Here’s a simple example I used in the presentation: We help CFOs atresidential real estate brokeragesstruggling toaccurately calculate commissions. In this 1-sentence we have; a role, at a specific business, and a frustrating activity. That’s […]
Or how to confuse and discourage the most enthusiastic customers I came up in an age where phone service, both landline and cellular, was sold by the minute – and every minute cost something different depending on where it fell in the day and which day it was. Despite nights and weekends being cheaper they […]
Number 6 Will Shock You The past couple weeks I’ve been toggling between interviewing customers on behalf of my clients (~$50M ARR) and advising early stage founders (<$1M ARR) on getting to real revenue faster. In the former, customers know my client’s product can help them more, but they don’t have time to just click […]
‘Percentage of Annual Revenues’ is my preferred reference for pricing. My overarching goal for every pricing project is to determine what a given product is worth to a given customer, and make recommendations to move that number closer to my clients’ business goals. Lately my preferred answer to “What’s it Worth?” is a % of […]
Not everyone needs you all the time – and that’s OK. Your absolute best customers pay upfront for a multi-year subscription. The next best is customers pay upfront for a one-year subscription. In a distant third place: Customers paying a month at a time. Also ran: Customers on post-paid usage plans. Whether B2B or B2C, any […]
More People ≠ More Value In the year 2025 B2B software sold by the incremental seat or user (e.g. Slack’s $8.75/user/month pricing) is still surprisingly common. Surprising because there are a number of macro-trends providing headwinds against this pricing model. The strongest headwind is All Companies Are Getting Smaller. But again, this is a bit of a […]
“Context is that which is scarce.” – Tyler Cowen I see too many early stage founders believing there’s something wrong with charging different customers different prices for “the same product.” It might be the same product, but almost definitely each customer requires different packaging to make the product useful in their context. Price is every current […]
Because you’re worth it. On a scale of 1-10, how confident are you in your ability to substantially help customers right now? A quick clarification. I’m not asking ‘how confident are you that your product – in its current state – can significantly help?’ Nor am I asking ‘how confident are you that your product someday – in […]