Pricing has a significant impact on your operating model. It is also one of the most powerful growth levers available to most businesses (yet also one of the most under-utilized).
Companies are often scared to increase prices for fear of losing loyal customers, lowered satisfaction ratings and being perceived as price-gouging for their products.
Ironically, keeping your prices stagnant is one of the quickest ways to deliver lesser value to your customers.
Lower margins > lower bandwidth to provide value > lower customer experience > lower customer satisfaction
This does not mean increasing your pricing indefinitely. It means finding the right (and fair) scientific price for your product so that you have a better operating model to deliver more value.
Getting to this answer takes work and going through customer data to truly understand what is a fair price for both sides.
At the heart of such a project, a lot of data needs to be analyzed, including:
This is where product, marketing and sales need to come together to triangulate the right pricing.
It's not easy but it's one of the highest ROI projects in most companies.
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