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 […]

To embrace the constraints, one must first identify them. Last week, I was talking to the Head of Pricing at a local law firm. Yes, you read that right, a law firm employing a full time Head of Pricing (turns out this is fairly popular).  The firm’s leadership considers each billable hour equivalent to a […]

Rule #14: Everything you experience is from the past. B2B pricing needs to be responsive to the market, which means reviewing them quarterly and against the customers and markets that have come through in the intervening time. The additional coordination cost of publishing pricing when the offering is not fully self-serve only slows down this […]

Change is a two way street. Pro Tip: Most software, and in fact most businesses, is held together with duct tape and baling twine.  But because it’s so shiny on the outside, and all the duct tape is hidden inside, everyone outside believes it’s a well-oiled machine of perfection.  It’s not.  Though it is waaaay better […]

Often, simply against doing nothing. I often see first-time entrepreneurs struggle to appreciate just how wide a solution set their potential customer have to solve the target problem. The problem could be solved; strategically & system-wide (a better but slower quality improvement) or tactically & locally (a worse but faster band-aid).  Here’s a recent example. A couple weeks back, […]