What is Willingness to Pay?

Today we’re joined by Dan Balcauski, founder of Product Tranquility, and an expert on B2B SaaS pricing and packaging. Prior to founding Product Tranquility, he did a lot of things, but the coolest we think was his solo round-the-world expedition to 21 countries. Today's topic: Willingness to Pay.

I get asked about quite frequently, which is, you know, should companies publish their pricing and packaging on their website. And there's really sort of three models that you follow.

So the first is fully transparent, public pricing. This is really good for high volume businesses. So product-led growth type models.

The second model the opposite of that, which is no public pricing and packaging. Those tend to be more suited for if you have a small addressable market, say I'm only selling to the Fortune 100.

Then the middle is, the other option there is where you offer bundles. Most SaaS companies use offer configurations, right? That's how you group together sets of features, functionality. Most SaaS companies will have like a good, better, best set of offering, but it's not the only one.

I usually offer configurations, some people refer to that as tiers and tiers implies good, better, best. It's not the only way or necessarily the best way, depending upon what your situation is.

Dan has shared his own recap blog post about the podcast with some awesome extra insights.