Marcos' approach to determining the optimal pricing strategy for your product or service involves combining psychology and math to enable value-based pricing.
In this episode of Chaos to Clarity, Eric is joined by Marcos Rivera, Founder and CEO of PRICING I/O - a company that assists growth-stage B2B SaaS companies in designing the ideal pricing model for scaling up.
Marcos' approach to determining the optimal pricing strategy for your product or service involves combining psychology and math to enable value-based pricing.
He has observed that a common mistake made by founders is adding too much value to their lowest tier offer while undervaluing their highest tier offer, which ultimately harms their business.
A statistic that Marcos brought up is that many of his newer clients typically see approximately 70% of their customers opting for the lowest tier of their product. This suggests that these companies have not structured their pricing in a manner that encourages additional use cases, which could benefit their clients as they scale.
Check out the full episode to learn more on how to incorporate value-based pricing and make price your ultimate competitive advantage.
HIGHLIGHTS:
00:00 How Marcos Found His Calling
07:58 Common Mistakes that Founders Make when Deciding on Pricing
13:52 How to Figure Out Which Features to Move to a Higher Price Point
19:52 Choosing Between Freemium and Free Trials
22:05 How to Set Up Free Trials Correctly
23:35 Structuring Your Product-Led Growth Motion
30:42 Street Pricing: A Pricing Playlist for Hip Leaders in B2B SaaS
36:30 Defining Your Product Market Fit
40:26 Finding your Anti-Persona
Connect with Marcos - https://www.linkedin.com/in/marcoslrivera/
Check out Marcos’ Book “Street Pricing: A Pricing Playlist for Hip Leaders in B2B SaaS” -
https://www.amazon.com/Street-Pricing-Playlist-Leaders-SaaS/dp/1737528010
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To reach out to Eric, visit FullCycleProduct.com