SaaS Backwards - Reverse Engineering SaaS Success

Ep. 142 - Why SaaS Pricing and Packaging Matters More Than You Think - with Dan Balcauski, Founder & Chief Pricing Officer at Product Tranquility

Ken Lempit Season 3 Episode 42

Pricing and packaging can either bog down your go-to-market engine or fuel it to peak performance.

This week’s SaaS Backwards podcast features Dan Balcauski, Founder and Chief Pricing Officer at Product Tranquility, a consultancy that helps high-volume B2B SaaS CEOs define pricing and packaging for new products. 

In this episode, Dan discusses the critical role pricing plays in a SaaS business model and why leadership teams must view it as a dynamic lever, not a "set-it-and-forget-it" element. He dispels the common myth that success hinges solely on what you charge, emphasizing instead that who and how you charge are the real determinants of success.

Breaking this down, Dan walks through the four key elements of SaaS packaging: price metric, price model, offer configurations, and price fences.

Our conversation also explores how to conduct a pricing study, realigning pricing strategies, AI's role in pricing decisions, and the ever-debated topic: should pricing be displayed on the website?

This episode offers actionable insights for SaaS leaders looking to harness pricing as a powerful tool for growth and market alignment.

Key takeaways from this episode:

  • The impact of pricing and packaging on revenue, profitability, and valuation
  • Why pricing is a critical lever for growth in SaaS businesses that shouldn’t be overlooked
  • Signs a new CMO or CRO should look for to determine if pricing needs attention at a prospective employer


Other resources to check out:

Interview with Vinay Bhagat, Founder and CEO of TrustRadius who publishes a yearly report about how B2B buyer behavior is changing.

The Lead Gen Mistake I Guarantee You’re Making – how to create content that better identifies intent from today’s b2b buyer.

And, if you want an outside look at your content with actionable advice, take advantage of our Content Audit. Valued at $20K in free consulting

---

Thanks for listening to the SaaS Backwards Podcast, brought to you by Austin Lawrence Group. We help SaaS firms reduce churn, accelerate sales, and generate demand. Learn more at AustinLawrence.com.

---

Is your messaging a sales ally or sneaky saboteur? Let us help with our free messaging audit.

We’ll look at your website’s messaging, content, and conversion potential from the eyes of today’s buyer and deliver a presentation with new combinations to more sales conversations and demos.

And the best part? It’s absolutely free.

Get started today!