The biggest mistake B2B SaaS and AI companies make is competitor-based pricing. This method disconnects your price from your customer value, commoditizing your unique AI solution and eroding profitability.
You Need the SVC Pricing Framework:
Strategic pricing expert Dan Balcauski recommends building your strategy on the SVC Model—a systematic approach for sustained revenue growth:
- Segments: Define detailed customer personas based on specific use cases and value realization, not just company size.
- Value: Quantify the business outcomes (time saved, revenue generated) your product delivers.
- Competition: Analyze all alternatives, including the “do nothing” option and emerging Generative AI tools.
Crucial Warning: If your AI product loses less than 30% of deals to price, you are likely underpricing. Never offer the product at full price; modest pricing validates genuine demand.
Visit us on Apple Podcast You can also find SalesPOP! On all major podcast stations.
Comments