Good Better Best

Good Better Best focuses on strategies and trends in pricing and packaging predominantly in the SaaS industry. It covers freemium models, pricing page optimization, the impact of acquisitions on pricing, and strategies for raising prices or moving away from free plans, drawing insights from major companies.

Pricing Strategies SaaS Industry Trends Product Packaging Market Entry Strategies Customer Acquisition Brand Positioning Customer Feedback Competitive Analysis

The hottest Substack posts of Good Better Best

And their main takeaways

Breakdown: Monday.com's AI Credit Model

3 implied HN points • 14 Feb 25
💼 Business SaaS Pricing AI Project management Automation
  1. Monday.com has introduced an AI credit model that charges users based on successful tasks completed by AI. This encourages teams to try out AI features without fear of wasting credits.
  2. The AI features include automations, dynamic data processors, templates, and specialized assistant apps, all aimed at making workflows more efficient and productive.
  3. This credit-based pricing model allows for flexibility and predictability in costs, but can also add complexity that companies must manage.

🧱 How to Build toward Outcome Based Pricing

3 implied HN points • 07 Feb 25
💼 Business Pricing Strategy SaaS Product Management Market Trends Customer Experience
  1. Companies are shifting from seat-based pricing to outcome-based pricing. This means they want to offer more value for what customers pay, instead of just charging per user.
  2. Add-ons and features can help users get more done without changing the whole pricing structure. This lets companies gradually move towards pricing based on results rather than just how many seats a customer has.
  3. Having complex pricing models can be beneficial. They allow businesses to charge different amounts to different customers based on what they need, capturing more value and catering to various market segments.

10 Ways to Price and Package AI (for any customer)

6 implied HN points • 24 Jan 25
💼 Business Pricing SaaS Consulting Marketing Partnerships
  1. AI can be effectively priced using different strategies like freemium, free trials, and personal add-ons. These methods encourage users to explore AI features while still aiming for possible upgrades.
  2. Offering tiered pricing or credit models helps companies capture different user needs. This way, customers can choose plans that suit their usage levels and budget.
  3. AI can be positioned as a premium offering within corporate plans. This not only adds value to the product but can also justify higher prices for enterprise clients.

January Roundup (20 Pricing and Packaging Updates)

3 implied HN points • 31 Jan 25
💼 Business Pricing SaaS Marketing Economics Product Development
  1. There have been many changes in pricing models for software companies lately. Companies are focusing more on how they package and price their services to attract customers.
  2. Features are being adjusted to create clearer paths for customers to upgrade. This includes limiting features on lower plans to encourage users to move to higher-paying options.
  3. Many companies are experimenting with new pricing strategies to improve conversions. For example, adding email trials or changing how users are categorized in plans.

Inside Superhuman's Pricing Evolution

5 implied HN points • 10 Jan 25
💼 Business SaaS Pricing Growth Strategy Customer success
  1. Superhuman started with a single $30/month price to differentiate itself in a crowded email market. This pricing strategy boosted user activation since customers felt the need to get their money's worth.
  2. Their pricing evolved from a simple model to three tiered options, tailored to different user needs. This change aimed for simplicity while capturing diverse customer groups effectively.
  3. To smoothly transition customers to new pricing, Superhuman focused on research, planning, and transparency. They allowed a grace period for existing customers to adjust, which helped them maintain customer trust.
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Roundup: Google Gemini, "Service-as-a-Software" and A New Era for SaaS Margins

2 implied HN points • 17 Jan 25
🕹 Technology AI SaaS Product Pricing Innovation
  1. Google has bundled its Gemini AI with Workspace plans, making it cheaper for users but risking lower profits. This strategy may help them gain more customers quickly.
  2. Human support will be essential for using AI effectively. Even with AI tools, we still need humans to refine the results and handle complex tasks.
  3. Different companies are adopting various pricing models for their AI services. Google's approach focuses on getting users to adopt their technology, while Microsoft is looking to charge more based on usage.

Pricing Roundup: Breakdowns for Monday, Loom, and Klaviyo

4 implied HN points • 22 Nov 24
💼 Business SaaS Pricing Tech Products Market Trends Business Strategies
  1. Monday increased the default user count from 3 to 10, aiming to attract larger customers. This change makes it clearer who their ideal customers are and improves pricing appeal.
  2. Loom launched a new AI plan with a usage limit, offering a fresh way to monetize for business users. Unlike other models, Loom's plan helps free users transition into paying customers without a complicated structure.
  3. Klaviyo emphasized the benefits of using both SMS and email, showing customers a 19% sales boost. They also introduced a handy pricing calculator to help brands understand the combined value of using both services.

The Best of Good Better Best, 2024

2 implied HN points • 20 Dec 24
💼 Business SaaS Pricing Trends Marketing Strategy
  1. AI in pricing is becoming really important. Companies are trying different ways to charge for AI features, and it's exciting to see how they'll do it.
  2. Seat-based pricing isn’t going away. Companies are getting creative with how they charge per user, making it more flexible for different types of customers.
  3. Customer support is changing too. Businesses are exploring how AI can help with support, but some are still focusing on personalized service to keep things human.

Pricing Roundup: Breakdowns for Ramp, Ahrefs, and Mixpanel

2 implied HN points • 13 Dec 24
💼 Business SaaS Pricing Revenue Marketing Product Management
  1. Some SaaS companies like Ramp and Docker have made recent changes to their pricing and product offerings. For example, Ramp reorganized its pricing page to highlight its features better.
  2. Ahrefs adjusted their pricing for additional users, lowering costs for the Lite plan while increasing them for more advanced plans. This can help attract new users while still encouraging upgrades.
  3. Mixpanel made a significant change by reducing the number of free events allowed but added new features. This suggests a focus on getting free users to convert to paid plans more quickly.

Briefing: AI Capabilities in SaaS

2 implied HN points • 06 Dec 24
💼 Business SaaS AI Marketing Finance Product
  1. AI is now being used in many areas of businesses, not just for creating content. Companies are finding various ways to utilize AI across different teams like product, customer support, and engineering.
  2. Most companies that offer AI features are making money from them, especially in content generation and editing. Many also earn from capabilities related to data analysis and customer interactions.
  3. The payment willingness for these AI capabilities is growing. Although some features seem common and cheap, if they can significantly save time or replace human tasks, their value might increase quickly.

Deconstructing Clay's Pricing Strategy

4 implied HN points • 25 Oct 24
💼 Business SaaS Pricing Growth Monetization Strategy
  1. Clay has a unique pricing model that doesn't charge per user. Instead, it uses a credit system, allowing teams to collaborate without adding costs for each user.
  2. Their pricing strategy has evolved over time with clear updates. Clay focuses on making sure customers understand how to use their credits effectively.
  3. They offer different plans that grow in features and flexibility, helping businesses of all sizes easily pick the plan that fits their needs.

Inside Statsig's Pricing Philosophy 📈

3 implied HN points • 08 Nov 24
💼 Business Pricing Strategy SaaS Market Competition Customer Acquisition
  1. Statsig has a clear pricing philosophy. They only charge for features that cost them money and create real value for their customers.
  2. Their pricing model uses a mix of free and tiered plans to attract users. This helps users easily test the product and upgrade as they grow.
  3. Statsig keeps their pricing competitive by showing comparisons with other similar tools. This transparency helps potential customers understand their options.

Creating Pricing Power through M&A

2 implied HN points • 15 Nov 24
💼 Business Mergers Acquisitions Pricing Strategy SaaS Market Trends
  1. SaaS companies can use acquisitions to improve their products, which lets them raise prices confidently by adding new features.
  2. Acquisitions help expand a company's offerings into a platform, allowing them to bundle products and sell them together more effectively.
  3. By acquiring diverse companies, a SaaS leader can use extreme discounting to win competitive deals, making it easier to attract new customers.

How Intercom Launched Fin AI

3 implied HN points • 18 Oct 24
💼 Business SaaS Product Development Pricing Strategy AI Technology
  1. Teasing features before they launch can create excitement. It helps customers know what's coming and encourages the team to work harder.
  2. Doing a soft launch allows a company to gather feedback and make improvements. It's important to stay flexible and adapt based on what you learn.
  3. Having a pricing strategy ready before launching is crucial. It saves time and helps ensure the product is set to succeed right from the start.

Pricing Strategy Breakdown: beehiiv 🐝

2 implied HN points • 01 Nov 24
💼 Business SaaS Pricing Growth Marketing Monetization
  1. Beehiiv has a smart pricing model that offers a free plan with great features, perfect for newbies to grow their newsletter. They also have different paid plans based on subscriber numbers, making it easy for users to find the right fit.
  2. The company regularly updates its features, often adding them to lower-priced plans, which keeps all users happy and supports their growth. It's about helping users succeed rather than just chasing profits.
  3. Beehiiv’s approach focuses on rapid development and customer feedback, allowing them to adapt quickly and maintain a competitive edge in the newsletter space. This flexibility is a big part of their success.

A Guide to Pricing Research, Part I

3 implied HN points • 23 Feb 24
💼 Business Pricing Strategy Customer Insights
  1. Start pricing research externally with quantitative surveys, using methodologies like MaxDiff, Conjoint, Van Westendorp, and Gabor Granger to understand customer preferences and price sensitivity.
  2. Consider using survey vendors like Qualtrics, QuestionPro, SawTooth, or Conjointly based on your product, team sophistication, and target market for data collection.
  3. For deeper insights, conduct qualitative interviews to explore nuances and motivations behind pricing decisions, ensuring flexibility, validity, and complementing quantitative efforts.

State of SaaS Pricing with Alvaro Morales, CEO of Orb

3 implied HN points • 09 Feb 24
💼 Business SaaS Pricing Monetization Strategies Pricing Models
  1. SaaS companies like Squarespace, Clearbit, and Slack are making pricing changes to align value metrics, add features, and adjust discounts.
  2. Interest in pricing is growing in the SaaS industry due to the impact on revenue, customer-centricity, and the need for efficient business growth.
  3. Orb, a developer-centric billing engine, aims to make pricing a product by offering tools for iterative pricing changes and flexible billing structures.

SaaS Shrinkflation

6 implied HN points • 28 Jul 23
🕹 Technology SaaS Pricing Software AI
  1. SaaS companies are implementing Shrinkflation by reducing usage limits while keeping prices the same.
  2. The debate between PLG and SLG in SaaS focuses on removing friction for customers.
  3. Recent SaaS trends aim to make it easier for small teams to build products and offer outcome-based solutions.

A Guide to Pricing Research, Part II

2 implied HN points • 13 Mar 24
💼 Business Sales Data
  1. Internal data is crucial for successful pricing research, focusing on areas like SaaS metrics, product usage data, sales data, and customer interviews.
  2. Key internal data categories include SaaS metrics like LTV:CAC, ACV, and NDR.
  3. Using product usage data, sales data, and customer interviews can provide valuable insights for pricing strategy.

Beware of Price Cliffs

4 implied HN points • 04 Aug 23
💼 Business SaaS Pricing Subscription Model Messaging
  1. Pricing changes shouldn't be scary - customer pushback can be handled confidently.
  2. Identify pricing thresholds ('price cliffs') where demand could drop sharply.
  3. When messaging customers about a price increase, explain reasons clearly and offer options to adjust their plan.

5 SaaS Pricing Tactics to Drive Profitability

3 implied HN points • 29 Sep 23
💼 Business SaaS Pricing
  1. SaaS companies are focusing on increasing profitability by adjusting the value-to-price ratio.
  2. Tactics include lowering usage limits but changing prices, plan consolidation, and implementing fake discounts.
  3. For SaaS companies, raising prices is a simple yet effective strategy to boost revenue.

👋🏼 SaaS companies are getting rid of freemium

3 implied HN points • 21 Apr 23
💼 Business SaaS Pricing Monetization Market research Community Engagement
  1. SaaS companies are getting rid of freemium plans recently.
  2. Use clear storytelling principles on your pricing page: build for someone, use resonating names, offer clear value propositions, focus on benefits not features, and provide expanding detail.
  3. Consider different strategies for pricing research based on the nature of your product and market.

How to sell against free 💼

3 implied HN points • 01 Mar 23
💼 Business Marketing Technology Finance Services Sales
  1. Uber's diversification into food and grocery delivery gives them pricing power within ride-sharing.
  2. When selling against free competitors, reframe the conversation to reveal the hidden costs of using free tools.
  3. Apple's services revenue, including subscriptions, surpasses that of major companies like Nike and McDonald's combined.

Join the Good Better Best subscriber chat

0 implied HN points • 07 Nov 24
💼 Business SaaS Pricing Community Chat Research
  1. There is a new subscriber chat for people who follow the Good Better Best publication. It's a place to discuss SaaS pricing and share ideas.
  2. To join the chat, you need to download the Substack app and turn on notifications. This way, you won't miss any updates or questions.
  3. Once you're in the app, find the chat icon, and you can start participating in conversations right away. It's easy and a great way to connect with others.