Watched a competitor triple their deal size in 8 months using a different pricing model

I run a small B2B SaaS tool for logistics companies and always charged per user. Then I saw this competitor in Dallas, FreightFlow, switch to per-shipment pricing back in March. By November they were closing deals at $12k/year instead of $4k, just because their pricing matched how customers actually used the software. Has anyone else seen a big jump after changing their pricing structure?

2 comments

2 Comments

knight.diana18d ago

You said "their pricing matched how customers actually used the software" and that really hits on something important. A lot of us just copy what everyone else does with per user pricing without thinking if it makes sense for the buyer. FreightFlow probably saw that some customers have a ton of small shipments and others have few big ones, so per shipment just feels fair to both. It forces you to really understand the job your software does for them, not just how many seats they fill. I bet if you mapped out exactly what value your tool delivers per transaction, you could find a way to tie price to that value and get the same kind of lift.

pat_park18d ago

Yeah, I used to just copy the standard per user model without even thinking about it. But this makes a ton of sense, tying price to how they actually get value from the thing. Kinda changes how I look at pricing now.