An interview with Dan Balcauski. Dan is a pricing & packaging consultant who is aiming to demystify the world of high-volume SaaS pricing and support this via his own consultancy, Product Tranquility.
We talk about a lot, including:
- The mission behind Product Tranquility, the problems they solve and some of the ways they can help you get your product packaging & pricing strategy right
- The pros & cons of the three main pricing models; cost plus, competition based pricing and value based pricing
- Why it can be dangerous to "herd", where everyone is following everyone else's pricing models but no one's done the research to see if that pricing's right
- Some of the early warning signals of bad pricing that you can look out for before you go bankrupt
- The 4-step plan a company should go through to identify its target market, the value the product brings, the competitive alternatives & the pricing model that can support it
- The importance of keeping packaging simple so that customers can understand what they're going to get & salespeople are able to sell it effectively
- Why freemium pricing is "almost always a bad idea" - some of the downsides of this approach and what you can do instead
And much more!
You can reach out to Dan on LinkedIn or check out his pricing blog on Product Tranquility.