Mar 23, 2020
Why you have to check out today’s podcast:
Scott Miller is a senior advisor, an active speaker in North America and Europe, workshop facilitator, and a leading global expert in B2B pricing with a specialization in B2B & B2G software pricing (both large enterprise and start-ups). He works as a consultant, trainer, and coach on the topics of product and marketing strategy, as well as pricing and offer design.
In this episode, Scott talks about his pricing framework in transforming companies from perpetual to subscription and the different nuances of pricing and monetization that go with it.
“Our world is becoming more about solution-based pricing where you have this combination of some hardware plus software plus some services. And so pricing teams are really struggling these days trying to figure out ’Well, how do I holistically price all of these components together?’”
– Scott Miller
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01:16 – How Scott started in Pricing
03:07 – What is Software Pricing Framework
04:33 – Pricing as a process according to Scott
05:41 – The concept of transforming companies from perpetual licensing to subscription
07:20 – The hurdles SaaS companies have to deal with in transforming from perpetual to subscription
13:15 – How to set a successful pricing conversation with clients
16:17 – Handling clients objections about shifting from perpetual to subscription
14:33 – Strategies of migrating a client from perpetual to subscription
18:17 – The complexity of sales compensation when you go from perpetual to subscription
22:38 – The offer design process and the pricing metrics used when shifting from perpetual to subscription
27:29 – Scott’s pricing advice
“Tell me how much we’re supposed to price a product and then we’ll know that it’s not about me being good at coming up with the price point or you coming up with a price point. It’s the process that you need to go through to come up with the right offer design.” – Scott Miller
“If you struggle articulating your value proposition then you’re going to struggle with the pricing strategy.” – Scott Miller
“As part of the process for offer design, when you’re thinking about, ‘How do I want to package our SaaS solution?’ One of the questions is going to be around. ‘What’s the right metrics that we want to use?’ The metrics that you want to have is it’s going be a good reflection of the value that your software delivers to a client.” – Scott Miller
“A lot of people do a lot of socialization internally and make sure everyone’s onboard, but we leave out that client part and that’s a really valuable piece of information that a lot of folks neglect.” – Scott Miller
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