How Pricing Demonstrates Value

Anchoring won’t fix your pricing page, but this will… Pricing is the second most visited page on any SaaS website, but most pricing advice misses the point. While everyone obsesses over psychology tricks like "end in 0.99" or "use anchoring," they miss something crucial: Those tricks only work if someone's already sold. In reality, most visitors aren’t ready to buy – they’re still figuring out your product. Therefore, pricing pages convert best when they demonstrate your value clearly, even if it seems repetitive. The best pricing pages do 3 things: 1. Lead with the outcome: Instead of a generic “Choose your plan” headline, show what customers actually get, e.g. “A/B test landing pages without coding” or “Generate fresh ad creatives in minutes based on your previous winners.”     2. Price for value, not access: Instead of charging per seat, price based on work delivered, (e.g. pages tested, ads generated). That way, every tier reminds them of the value they’ll get.     3. Answer objections directly: Add an FAQ addressing your prospects’ top 3-5 fears head-on. (Your sales team knows these by heart). Examples: “Will my team adopt a new tool?” or “Are we charged for unused credits?” Want a great example? Check out Leadsie's pricing page (Screenshots below) Helpful? Follow me to keep seeing my posts. Matt Lerner

Pricing isn’t about setting numbers. It’s about translating value. Most teams think pricing means picking a number. It’s not. Pricing is how you tell the story of your value. And that’s why Product people should be especially attentive and ideally lead the pricing discussions. ⛔ Underprice, and you confuse customers about what your product is worth. ⛔ Overprice without the value to back it, and you break trust. The real job of pricing is to make people believe in your value. Mini-checklist for value-aligned pricing ✅ Define your key outcome: what tangible result does your product deliver? ✅ Map that outcome to a user’s success metric (for example, revenue saved or time reduced). ✅ Choose a metric that reflects that success; your pricing should scale with it. ✅ Test perceived fairness with 5–10 target customers before finalizing. Pricing starts with empathy: understanding what people value, not what they’ll pay. #ValueBasedPricing #SaaS #Monetization #ProductManagement

What if your biggest pricing problem... isn't your price? . . It’s a question that keeps founders and product leaders up at night. The pressure to cut prices in a competitive market is immense. But more often than not, the problem isn’t the number on the tag; it’s the story you tell. I recently worked with a fantastic B2B SaaS client. They had a superior product, but their trial-to-paid conversion rate was stagnating. The feedback from lost leads was almost unanimous: "It's too expensive." They were about to slash their prices by 20%. I convinced them to pause the price cut. We simply re-engineered their messaging to stop describing features and start demonstrating value - translating technical specs into tangible business results and peace of mind for their customers. For example: "100 GB of storage" became "Never delete a critical file again. Your entire team's history, secure in one place" The result? In the following quarter, their conversion rate increased by 40%.  The "too expensive" complaints vanished. We didn't change the price; we changed the perception of value. This isn't a fluke. It's a fundamental principle of value-based marketing. For example:  Starbucks doesn't sell you coffee. They sell you a reliable "third place" between home and work, a sense of community, and a personal treat. The messaging justifies the $5 cup. 💡 My Key Learnings from this journey: - Price isn't the issue; value perception is. Use messaging to close the gap. - Sell the destination, not the airplane. Focus on outcomes over features. - Frame your price against the problem, not the competitor. Context makes you a bargain. Before you consider discounting your product, take a hard look at your messaging. You might be sitting on a goldmine, just telling the wrong story. 👇 When has a change in messaging, not price, made a difference for you or your company? Share your story below! #PricingStrategy #Marketing #ProductManagement #Copywriting

Last quarter, I told a client to RAISE their prices by 50% In the middle of a recession. While losing deals to cheaper competitors. When their win rate was already below 20%. They took the risk The results? → Win rate: Jumped from 19% to 40% → Sales cycle: Cut from 118 days to 70 → Revenue: Up 150% in just 90 days Here's what we discovered: Their low prices weren't making them more competitive They were making them less trustworthy When we analyzed their lost deals: 80% of prospects who said "too expensive" never bought from anyone The deals they won at discounted prices had 2X higher churn rates Procurement was treating them as a commodity because they positioned as one Their best customers were the ones who DIDN'T negotiate on price So we implemented what I call "Trust-Based Pricing": - We increased prices to reflect the true value delivered - We eliminated all discounting completely - We restructured compensation to reward margin, not revenue - We trained reps to walk away from price-sensitive prospects The transformation was immediate: - Prospect engagement quality: Increased 100% - Deals requiring procurement approval: Reduced by 60% - Implementation success rate: Up from 50% to 75% - Average customer lifetime: More than doubled The dangerous myth killing your sales growth: Lower prices win more business. The reality? In complex B2B sales, your price is a powerful signal about your confidence and the value you deliver. Your competitors are busy slashing prices and offering "special discounts." Meanwhile, market leaders are systematically increasing prices and watching their close rates improve. What if you raised your prices tomorrow and trained your team to confidently defend the new value proposition? P.S. If you need help with your sales, send me a message

Founders: If you're worried about charging too much, you've already lost. At Hilti, I was product manager for a nail. (Yes, a f**king nail) → Cost to make: 70 cents → Selling price: $9 → That's a 1200% markup Hilti makes more money when they sell a box of 100 nails than Apple does when they sell an iphone 16pro. Might sound insane for a nail, but hold on. This nail was special. It could be shot directly into steel. You can bang this nail into steel in 1 second. How is that useful? On offshore oil platforms you could hang a light in 5 minutes. See the picture I attached? See, how the rig looks like a lit Christmas tree? Apparently there are a lot of lights. Now why is that a big deal? The alternative: 1. Get a welder 2. Get a "weld watch" guy to monitor you 3. Get safety signoffs 4. Turn on the welding machine. Read that as "Light a f**king fire on an oil rig" 5. Total cost: $1,000 per connection Suddenly $9 looks like a bargain. Brutal truth about pricing: - Your cost doesn't matter - Your effort doesn't matter - What competitors charge doesn't matter It's all about the value you create. If you're struggling with pricing, you're probably building something everyone else is making. You've lost pricing power because you're selling a commodity. When customers ask "why are you more expensive?" ↳ Translation: "I can get the same thing somewhere else for less" TAKEAWAY: Don't build commodities. Build something so valuable that when customers see the price, they don't even blink. — PS: That nail company is making a killing. Because they solved a real problem, not just another "me too" product.

The Biggest Lie in Sales: “Price Is the Problem” “Your price is too high.” Sales teams hear this every day—and too often, they believe it. But here’s the uncomfortable truth: Price is rarely the real reason deals are lost. Price becomes the excuse when value is unclear. Buyers don’t resist paying more. They resist paying more without understanding why. When sales conversations fail to clearly connect: The solution to measurable business outcomes The offering to reduced risk, higher productivity, or growth The investment to what the buyer stands to lose by doing nothing …the buyer naturally shifts the discussion to price. This is where discounting begins—not because the product is expensive, but because the value story is weak. High-performing sales professionals approach price very differently. They don’t defend it. They don’t apologise for it. They design value so clearly that price becomes logical. They: ✔ Quantify impact instead of listing features ✔ Speak the buyer’s business language, not product language ✔ Highlight the cost of inaction, not just the cost of purchase ✔ Address risk and uncertainty before they show numbers In such conversations, price doesn’t disappear—but it loses its power. If your team is constantly discounting, don’t rush to revise pricing. Ask deeper questions instead: Do we clearly articulate value in customer terms? Do buyers understand what success looks like after buying from us? Are we helping them justify the decision internally? The strongest sales organisations win not by being the cheapest, but by being the clearest. Because in the end, buyers don’t buy low prices—they buy confidence. #ValueSelling #SalesExcellence #B2BSales #PricingStrategy #SalesLeadership #ConsultativeSelling #Salexcel Share

𝗣𝗿𝗶𝗰𝗶𝗻𝗴: 𝗧𝗵𝗲 𝗠𝗼𝘀𝘁 𝗢𝘃𝗲𝗿𝗹𝗼𝗼𝗸𝗲𝗱 𝗙𝗼𝗿𝗺 𝗼𝗳 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝘗𝘳𝘪𝘤𝘪𝘯𝘨 𝘪𝘴 𝘯𝘰𝘵 𝘫𝘶𝘴𝘵 𝘢 𝘯𝘶𝘮𝘣𝘦𝘳 — 𝘪𝘵’𝘴 𝘢 𝘮𝘦𝘴𝘴𝘢𝘨𝘦. Price signals how we see our own value, and how we expect customers to see it. In most organizations, pricing decisions are rushed, emotionally charged, or treated as an afterthought. Yet, 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗶𝘀 𝗼𝗻𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗽𝘂𝗿𝗲𝘀𝘁 𝗿𝗲𝗳𝗹𝗲𝗰𝘁𝗶𝗼𝗻𝘀 𝗼𝗳 𝘆𝗼𝘂𝗿 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 — 𝗶𝘁 𝘀𝗶𝘁𝘀 𝗿𝗶𝗴𝗵𝘁 𝗮𝘁 𝘁𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝘀𝗲𝗰𝘁𝗶𝗼𝗻 𝗼𝗳 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗽𝗲𝗿𝗰𝗲𝗽𝘁𝗶𝗼𝗻, 𝗯𝗿𝗮𝗻𝗱 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻, 𝗮𝗻𝗱 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲. Pricing, done right, starts with understanding perceived value, not only internal cost structures. It is as much about psychology as it is about math. The way you 𝗽𝗿𝗲𝘀𝗲𝗻𝘁, 𝗰𝗼𝗻𝘁𝗲𝘅𝘁𝘂𝗮𝗹𝗶𝘇𝗲, 𝗮𝗻𝗱 𝗳𝗿𝗮𝗺𝗲 𝗮 𝗽𝗿𝗶𝗰𝗲 𝗼𝗳𝘁𝗲𝗻 𝗰𝗮𝗿𝗿𝗶𝗲𝘀 𝗺𝗼𝗿𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝘁𝗵𝗮𝗻 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗲 𝗶𝘁𝘀𝗲𝗹𝗳. A well-framed price can elevate perceived value — a poorly framed one can instantly erode it. A few reflections for marketers and leaders: 1️⃣ 𝗣𝗿𝗶𝗰𝗲 𝘄𝗶𝘁𝗵 𝗲𝗺𝗽𝗮𝘁𝗵𝘆, 𝗻𝗼𝘁 𝗲𝗴𝗼. Survey actual customers — not hypothetical ones. Pricing depends on experienced value, not expected value. 2️⃣ 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 𝗹𝗼𝗴𝗶𝗰 𝗮𝗻𝗱 𝗲𝗺𝗼𝘁𝗶𝗼𝗻. Price too low, and you risk signaling poor quality. Price too high, and you risk signaling arrogance. Pricing is not about what customers can afford — but what they believe is worth it. 3️⃣ 𝗧𝗲𝘀𝘁, 𝘁𝗵𝗲𝗻 𝘁𝗿𝘂𝘀𝘁. Use research tools like PSM (Van Westendorp) to define the “acceptable range”, but validate it with real behavior. Numbers show intent. Behavior shows truth. 4️⃣ 𝗞𝗲𝗲𝗽 𝗰𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆, 𝗻𝗼𝘁 𝗰𝗵𝗮𝗼𝘀. Changing pricing too often confuses both your teams and your customers. Once you find your range, commit to it — and let the brand do the compounding. Pricing is strategy translated into numbers — the clearest articulation of how value meets worth. 𝙈𝙖𝙮 𝙮𝙤𝙪𝙧 𝙚𝙛𝙛𝙤𝙧𝙩𝙨 𝙥𝙖𝙮 𝙤𝙛𝙛 ... #MarketingStrategy #PricingStrategy #BrandPerception #ValueCreation #BusinessStrategy

𝐖𝐞𝐞𝐤 5 𝐨𝐟 𝐦𝐲 7-𝐩𝐚𝐫𝐭 𝐬𝐞𝐫𝐢𝐞𝐬 𝐨𝐧 𝐁𝐫𝐚𝐢𝐧𝐏𝐢𝐜𝐤-𝐭𝐨-𝐁𝐫𝐢𝐞𝐟 The moment you say "my rate is X per hour," you have already lost the conversation. Not because the rate is wrong. Because you have made it about your input rather than their outcome. Here is the difference: Hourly pricing says: pay me for my time. Value pricing says: invest in your result. These are not two versions of the same thing. They are fundamentally different commercial relationships. When you charge by the hour, the client is watching the clock. Every question they ask feels like an expense. They ration the conversation. They hold back information. They second-guess whether they need another session. When you price the result, the conversation changes completely. The client is investing in a destination and wants to give you everything they have because the faster you understand, the sooner they arrive. 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐬𝐭𝐚𝐤𝐞𝐬 𝐢𝐧 𝐦𝐨𝐬𝐭 𝐛𝐫𝐚𝐢𝐧-𝐩𝐢𝐜𝐤 𝐜𝐨𝐧𝐯𝐞𝐫𝐬𝐚𝐭𝐢𝐨𝐧𝐬: A major partnership is being navigated correctly. A product launch without a stakeholder resistance strategy. A leadership vacuum that compounds over three quarters. Against those stakes, what is a USD 3,500 advisory fee? Not a cost. Risk mitigation. 𝐓𝐡𝐞 𝐟𝐨𝐫𝐦𝐮𝐥𝐚 𝐈 𝐮𝐬𝐞: Fee = (Value of the outcome to the client) × (Your confidence you can deliver it) Not hours × rate. Not what the market charges. Not what feels comfortable to ask. The value of the outcome. 𝐇𝐞𝐫𝐞 𝐢𝐬 𝐭𝐡𝐞 𝐩𝐫𝐚𝐜𝐭𝐢𝐜𝐚𝐥 𝐭𝐞𝐬𝐭: Before you name a fee, ask yourself: What is the cost to this client of NOT solving this problem? If the answer is "significant", your fee is probably too low. What is the highest-value outcome you have ever delivered as a consultant, and did your fee reflect it? I will share mine in the comments. #ValueBasedFees #ConsultingPricing #AfricanConsultants #BrainPickToBrief #ExpertiseEconomy

How much would your company pay for a SHORTCUT?  If you are shipping goods between New York & Japan you could travel 8,000 treacherous miles around South America -- or use a shortcut through the Panama Canal - that saves you weeks of time, fuel, and headaches. Shippers pay $300K to $1 million per passage! The Panama Canal is a masterclass in Vale-Based Pricing showing how understanding customer needs can unlock significant revenue. It doesn’t base its fees on operational costs or distance. They tailor prices by vessel size, fuel saved, and even urgency…with priority access for a premium fee (i.e., Fast Pass).   So What? Value-based pricing isn’t just for canals; it’s a game-changer for B2B and tech companies. Consider Medtronic, which prices medical devices based on the value they deliver—better patient outcomes, fewer hospital readmissions, and long-term cost savings for healthcare providers. Yet, many companies default to cost-based pricing (like construction firms that use a cost-plus approach) or competitive pricing (like credit card providers who mirror each other’s rewards). While those methods are simpler, they can leave money on the table. The Panama Canal and Medtronic show us that aligning pricing with the real benefits customers receive can differentiate your brand and boost profitability.   Now What? For your business, adopting value-based pricing starts with a simple but powerful shift: stop thinking about what your product costs and start thinking about what it’s worth to your customers. Ask yourself: Are you offering any “shortcuts” that save time or reduce hassle? Are your products more durable, leading to long-term savings? Do some customers place higher value on your offerings and might be willing to pay more? Like the Panama Canal, identifying and communicating your unique value can not only maximize revenue but also build stronger relationships with customers who see your worth. #caltech #strategicplanning

Every $150/hour you charge puts you in direct competition with every other agency quoting hours. Every value-based project puts you in competition with business outcomes. Most $2M - $10M agencies stay trapped in hourly billing because it feels safer. You can predict cash flow, track utilization, justify bench costs. But hourly rates create a ceiling on your gross margin that value pricing removes entirely. Here's what changes when you shift to value-based pricing: 1. Your proposals compete on results, not rates. Instead of competing with 15 other agencies on who can deliver faster or cheaper, you're solving a $500K revenue problem or protecting 40% of at-risk revenue. The conversation shifts from cost to ROI. 2. Utilization pressure disappears. When a developer solves the problem in 40 hours instead of 80, you don't lose money. You deliver value faster and keep the same project fee. 3. Presale conversion improves. Prospects understand paying $50K to solve a revenue retention problem better than paying $150/hour for undefined development work. The value connects directly to their P&L. 4. Account management becomes strategic. Your teams focus on delivering measurable outcomes rather than logging billable hours. QBRs shift from time reports to business impact discussions. 5. Pipeline pressure reduces. Higher-margin projects mean you need fewer clients to hit the same revenue targets. Your team can focus on fewer, better relationships. The transition takes 6 to 12 months, but agencies that make the shift see gross margins increase 15 to 25 percentage points. The business becomes more predictable and less dependent on constant new client acquisition.