How to get SaaS pricing right with Kyle Poyar, OpenView3 min read
The SaaS Revolution Show is a weekly podcast that brings insights and tactics from leading SaaS entrepreneurs and operators across the world. Hosted by Alex Theuma, the show is brought to you by SaaStock. You can subscribe on iTunes, Stitcher, Overcast.
Kyle Poyar is a self-professed pricing and growth nerd. The latest guest on the SaaS Revolution Show, Kyle is Senior Director of Market Strategy at Openview, one of many speakers we will welcome in Dublin for SaaStock18. His passion lays in seeing how packaging and pricing have the power to build a large and enduring business.
Kyle helps OpenView’s portfolio companies accelerate to top-line growth through deep insights into their market landscape and customers. He looks into lead segmentation, positioning, channel and partner strategy, as well as new market entry. But most importantly Kyle guides them through their packaging and pricing initiatives. He works with UserTesting, Expensify, and Lessonly among other of OpenView’s portfolio companies.
Kyle recently published an article studying the price changes Netflix introduced. The point he was making there, as he does so on the podcast, is that few companies understand the real effect price increases have on a company’s bottom line, a contributing factor to the reluctance of many SaaS founders to charge more.
Kyle is also the author of a comprehensive pricing e-book — Mastering SaaS Pricing. It’s the fundamentals, however, that most SaaS founders still struggle with. A recent survey OpenView ran, revealed that only 8% of SaaS companies do proper research before setting a price. More than half do not bother with research at all. It’s unnerving when, as Kyle points out, most companies end up being too cheap, which has a much more negative effect that anyone suspects.
Before Kyle began helping SaaS companies figure out pricing, he worked for Simon-Kucher & Partners where he determined prices for a myriad of products, anything from diapers to caskets. Through all that experience, Kyle has accumulated vast knowledge and in the episode borrows examples from behavioural psychology that span from Netflix and SaaS companies to buying beer on the beach and selecting jam in the supermarket to make his points.
Listen on to learn:
- How to be more data-driven in your pricing decisions
- How to have better pricing conversations with customers
- What are the signs it’s time for a price increase
- What are the impacts of increasing prices and why no one should be scared of that
- How do you implement and communicate a price increase
If you like the show, please drop us a review on iTunes or wherever you get your podcast.
Kyle was one of many speakers we hosted in Dublin for our flagship SaaStock18 where he talked in much more detail about pricing right. Alongside him, Patrick Campbell and Carrie Osman further gave actionable advice on pricing. We have over 40 hours of SaaS content, covering a myriad of subjects, which you can access by getting the SaaStock On-Demand pack.
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