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Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? Get those annual contracts whenever possible … and where it works for the customer.But … Most of the time, it’s a false choice. Bigger companies want to sign annual contracts, especially in exchange for discount s.
As we march towards the end of 2024 and another selling year, we work to close deals and position ourselves for a strong start to 2025. While focusing on these two selling success factors, we need to also consider a broader and more all-encompassing topic – our markets. And how well can you sell and serve remotely?
I’m not bringing it up to judge Robinson on his turn at this unfortunate ritual. That means there’s an increased likelihood of terminating the contract because the tool is no longer needed and/or its champion is gone. There are always leaders who prioritize low prices over the value products provide. Processing.
Pricing is more than just a number on a contract — when used thoughtfully, it can become a strategic tool for your SaaS product that can drive product adoption, customer satisfaction, and business growth. ” Pricing is also more than just the bottom-line price level. ” So, How Should You Price?
Your pricing and quoting strategy. Pricing isnt just a number you stick on a product or service. The structure and logic behind your pricing can nudge buyers toward larger deals, reinforce your value, and streamline the path to yes. One of the most overlooked levers? Its a narrative. A positioning tool.
Every brand knows that pricing plays a major factor in purchasing decisions. Price is one of the most visible parts of any offer, and getting it wrong can cost more than just a few sales. A poor pricing strategy erodes trust, damages positioning, and undermines long-term brand growth. Lets get started.
You Gotta Do the Work (Of Course) Your Competition is Trying to Sell To, And Steal, Your Customers And yet, I still see so few SaaS companies doing even the most basic steps here. To buy potential customers out from long-term contracts they’ve already signed and paid for with the competition. Buy-out contracts.
In scaling the cash-flow side of SaaS, there’s almost nothing more powerful than a nnual contracts combined with prepaid cash. You get all the cash up-front, and your churn almost by definition goes down. But … to go to annual pricing or not … . It’s just such a huge benefit. We usually hit it.
” A written sales contract should accurately reflect the verbal agreements made — or else you risk the buyer backing out of the deal or having a very unhappy or potentially litigious client after the deal is done. Sales contracts are vital to completing any business transaction. What you’ll learn What is a sales contract?
And it’s been a vivid reminder of what I hate so much about buying software: Vendors selling you software you never use or deploy. Salespeople pushing you to sign multi-year contracts you don’t want. And MongoDB found they closed more when they stopped have their sales team push annual contracts! The list goes on.
I bought a new car in 2021, when the pandemic had virtually eliminated the gap between new and used prices. Car buyers 30 years ago might have shown up at the dealership wanting a truck, a sedan, or something as vague as a “good family car,” and the salesperson’s job was to help steer them in the right direction based on their needs.
Q: What billing or pricing tactic have you found in the end just wasn’t worth it? ” and “Something we found really effective at CoursKey, and other vSaaS businesses will likely find as well: Instead of running pilots, sign a multi-year contract but give them an opt-out after 3-6 months. .” Jason, ed. :
When sales decline, businesses begin to reduce expenses, lower prices and delay making new investments. Pricing pressures : As consumers go through times of economic uncertainty, consumer confidence and priorities in spending disposable income change. Essential products are often price-sensitive during a downturn. That’s great.
Generally, after you agreed with your client on a solution, you would present it and provide a formal proposal and pricing. At this point, you may or may not need to provide a presentation, but you will eventually have to provide your client with a proposal and a contract. Presentation and Proposal. ” You need to make sales.
Q: Dear SaaStr: When should a SaaS Company allow Month-to-Month contracts vs requiring 12-month commitments? Annual contracts combined with prepaid cash are a huge benefit. You get all the cash up-front (this is how I went cash-flow positive in fact), and your churn almost by definition goes down. Get them whenever possible.
As a result, they often end up making costly mistakes. You will then be able to take steps to increase your margins, whether it’s by negotiating a better deal with your suppliers, reorganizing your price structure, or reducing your overheads. In some cases, people end up getting a space that is way too expensive or big for their needs.
AI can help discover preferences in contracts, understand how legal teams like to negotiate and implement that automatically in the software. One example from Ironclad, but something we all experience as a SaaS company is contract negotiation. This is where AI can come in. And I think this is playing out in future AI products as well.
We were at my brother Ray’s football game and so I went to the concession stand, looked at the prices of candy and bought 5 – yes, count them – 5 Three Musketeers candy bars. This made me think of business and sales and pricing and competition and, somehow, I ended up thinking about this. He gave me the quarter.
Now, the sun is shining again and we’ve resumed normal selling activities, as best we can. In selling, it’s all about questions. Can you sell and deliver remotely? While you may long to return to in-person selling, research shows your buyers feel differently. How about your team selling assets – your SME’s?
As the selling year draws to a close, we’re captivated by Q4 activities focused on closing the year strong in terms of winning business and, hopefully, also delivering as much value as possible to our clients. In selling, it’s all about questions. How about your team selling assets – your SME’s? Service Structure and Deployment.
Niche sites, influencers and publishers Niche sites, influencers and media companies create content for small business Saturday, have round-ups sharing the best of Black Friday and Cyber Monday, as well as listicles of the best XYZ. With fewer days until free shipping and time to publish, now is the time to line up the lists.
If a prospect asks about integrations, pricing details, or implementation requirements that you’re unsure about, you’ll simply ask your AI, and it will provide the perfect answer in real-time. It can handle pricing questions, objections, and proposals without emotional baggage or commission pressure.
I identified a key stakeholder with purchasing authority, reached out with a simple yet elegant email pitch, and they responded asking me for a contract they could sign right away. I woke up to my alarm clock shattering that fantasy. How to Use AI for Sales Follow-Ups 1.
Key Features: Workflow automation : set up who is on your team, what their role is, and hook integrations with your CRM, proposal management system, and contract management software. Missed follow ups, lost sales opportunities, time lost to manual processes , and more can be costing you revenue without even realizing it.
By the way, the average selling company uses about 10 tools (and still wants more). Price: from $132.30 ZoomInfo is a lead generation tool designed for B2B companies that need the most up-to-date information. Moreover, ZoomInfo has the most accurate and up-to-date database for B2B. Price: upon request.
Zeta Global’s stock price jumped 15% yesterday as the company issued a detailed rebuttal to a report critical of its financial practices. Culper Research is owned by Christian Lamarco, who is known for short-selling stocks and may profit from a drop in Zeta’s stock price. Email: Business email address Sign me up!
Should sales just disappear once the contract is signed? #5. Hire a great VP of Sales, and revenue goes up. It’s a challenge to get your logo retention rate up to 90% or higher. #8. 59% of you have raised prices this year. . #8. 59% of you have raised prices this year. Fix this, and watch sales go up.
Tools like Gong can provide insights into call quality, follow-ups, and adherence to best practices. Churn and Expansion : For existing customers, analyze churn rates, upsell/cross-sell performance, and NRR (Net Revenue Retention). This includes contracts, pricing approvals, and any legal requirements. If so, why?
Not to mention how much tap-to-pay transactions have sped up my coffee runs. These processors make it easy for businesses of all sizes to accept payments from customers globally and in person, making them a critical component for anyone who sells goods or services. PayPal is easy to set up, but a potential downside is its fees.
Depending on what your business sells and how your products are marketed, you can find the right type of ecommerce that will be the best fit for you. B2C transactions make up hundreds of thousands of online marketplaces that sell a wealth of consumer goods that can often be delivered in days or even hours.
A wide variety of possible price negotiation strategies exist but all of them have a common baseline. In this article, we’ll help you find answers to the most important questions that all business owners and salespeople should have in their arsenal when negotiating prices with their customers. Don’t focus on the price either.
What is a Pricing Strategy? Pricing strategies don’t just come down to what you charge, it can come down to how you present your prices. And it’s not over yet; now comes the biggest hurdle… pricingup your offering. 13 Types of Pricing Strategies Examples. 3 Cost-Plus Pricing Strategy.
For example, a $25k pilot can grow into a $1M+ enterprise-wide contract over time. Enterprises often hesitate to commit to large contracts upfront, so offering a short-term PoC can help you get your foot in the door and build trust. Dont underestimate the power of showing up. It’s not worth … not showing up.
The price itself also varies depending on the business type, company size, industry, and other factors that affect the cost per lead metric. What matters, though, isn’t the price tag itself, but whether the lead generation agency can bring in leads at a cost that allows you to stay profitable. It depends.
You pay a subscription for websites to help you sell stuff. It’s just only a minority is under a contract. And almost none is under a long-term contract. Wow! But almost none of its revenue is truly SaaS or provided under a fixed, recurring contract. And yes, it’s a software company. Example #3: Snowflake.
If youre looking to increase revenue without acquiring new customers, cross-selling is one of the best ways you can do that. Effective cross-selling helps customers find new products they genuinely need, so theyll leave more satisfied with your business and remain more loyal, too. What is cross-selling in sales? Lets dive in.
In the last year we’ve been leveling up a lot of our systems at SaaStr, and as part of that, moving from a lot of self-service and simple products to more robust ones. And one thing I’ve been shocked about is how few sales processes have kept up. Now, it’s time to overhaul how we sell it as well. And price it that way.
If youre selling a cup of coffee, the options are relatively simple. You choose a price based on size, add any extras, and send your customers on their way. You need to evaluate pricing, implementation, features, integrations, and ongoing support. Identifying upsell and cross-sell opportunities to drive continued revenue growth.
Email: Business email address Sign me up! It specifically states that a sharp hike in tariffs could lead to a broader economic slowdown and potentially contract consumer spending and GDP in 2026, which would, as you might imagine, negatively impact retail sales. The advertising is used to sell goods and services. Processing.
Price: $49/month for Salesforce users, corporate plans available Automations: Non-selling activities, lead prioritization, lead capture Veloxy has several features to help you automate Salesforce, no matter how long you’ve been using the CRM platform. Go here to learn everything you need to know about Salesforce Automation.
The best sales teams don’t just sell — they keep customers happy and drive serious upsell, cross-sell, and expansion revenue. This is where a sales rep physically meets a potential customer to discuss needs, budgets, volumes, prices, requirements, timelines, and other contract details. Talvista: $199k ACV and $996k ARR.
Most sales reps spend over 175 hours every year on generating quotes and proposals, and waiting for contracts to be signed. When speed to close is essential in a competitive profession, you need the ability to generate and send contracts in one click, one minute. PandaDoc has four pricing levels. Highest Rated Feature.
Sprout Social doesn’t only sell a low-end edition. It sells to customers S, M, and Larger. A reminder that sometimes as you go upmarket, the SMBs can still keep up the pace. Bill.com has 121% NRR from SMBs — and that’s up from 110% at IPO. Because it’s not about price.
This technology integrates with product catalogs, pricing databases, and customer relationship management (CRM) systems to produce detailed and accurate quotes swiftly. Automation ensures that quotes are generated using up-to-date and accurate information, reducing the likelihood of errors. How does sales quote automation work?
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