InQ5WeTrust

No marketing, mayo isn't an MQL

Acclaimed Answer

How do you tell the CEO your pricing sucks

Heifers, steers and that one groundhog,

I come to you today with a quandary, namely how best to tell the CEO that your pricing sucks ass.

Why does it suck the booty? Good question young savage.

Basically, we closed a deal with the FAANG Gang last year that closed in the low six figgys, but with a high cost per unit.

Since then Daddy Dearest has thought that this is the going market value for our data product.

It aint though.

We're struggling to tap into non-gangfaang verticals. I've been building up a list of data points showing the struggle in order to make a case.

Beyond quoting WWE legend Scott Steiner, what else would you recommend?

I don't have alternate pricing to yet present as the convos tend to shut down if they're not fully engaged. The ones that do have legs switch into rev share agreements that don't come near our 'go-to pricing'.

Humbly yours,

A rep who needs some commish for a messy ski holiday

👑 Sales Strategy

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TheNegotiator

Arsonist

4

VP of Sales

I booked a google meet with the CEO, and I told him our pricing fucking sucks. He accepted what I said. I now sell the product for as much as I can get for it, which is still typically 1.5-3x what our competition charges, but less than the 4-5x list we had before.

InQ5WeTrust

Arsonist

4

No marketing, mayo isn't an MQL

I like your funny words magic man.

About to do this in our 1:1 later.

UrAssIsSaaS

Arsonist

3

SaaS Eater

Is the CEO preventing you from closing deals at any price point other than said rack rate?

If not just tell him his pricing is shitty and here are 10852083 other deals we have closed with a different structure that work out way better.

You cant price based on the anomaly.

InQ5WeTrust

Arsonist

2

No marketing, mayo isn't an MQL

It's not a no, but it's a distinct 'hmmm InQ5, how will we ever make our money-back?'

Concur on not being able to price based on an anomaly.

Trying to find a way to rock the boat but in a productive way. Maybe we'll go with a classic, so the short answer is no and I'm now going to spend the next 15 minutes explaining why.

UrAssIsSaaS

Arsonist

2

SaaS Eater

Lovely. Whats your average payback period compared to the fang bang deal? You're a SaaS biz right?

Probably going to be negative for the first 12ish months regardless.

InQ5WeTrust

Arsonist

3

No marketing, mayo isn't an MQL

Faang bang is a 12-month license at primo.

Have a bunch of commercial apps we're reaching out to a la uber/door dash - they're interested but the RoI is less clear for them than Faang, so they come in at a lower price. They'd still be a SaaS boi.

Other peeps tend to just want data snapshots versus continuously updated. More project-based almost. These boys we need to crack to make some more serious ched.

My payback is a quarter after the first cheque cashes.

UrAssIsSaaS

Arsonist

2

SaaS Eater

Sorry I mean for the business, not you. Do you know how long it takes for Fang to break even compared to your average deal?

InQ5WeTrust

Arsonist

2

No marketing, mayo isn't an MQL

my b, midnight this end, Q5 be crashing after a second glass of wine.

Faang gang is more of a strategic goal - the money is irrelevant to them tbh - part of a larger multi billy dollar initiative

SaaSam

Politicker

2

Account Executive

Do you know why you were able to sell it at that price before and what the difference is between them and other verticals?

If so, explain the difference and why that is going to come in to play with pricing. If he isn't an idiot, should be an easy conversation.

InQ5WeTrust

Arsonist

3

No marketing, mayo isn't an MQL

The man isn't an idiot by any stretch, he's just too invested in the product and has drunk the marketing Koolaid.

Digging deeper primarily comes down to use-case and the strategic importance for the faang bang gang. People outside that can't stomach the list price.

I'll note my thoughts down and ruminate further.

SaaSam

Politicker

1

Account Executive

Sounds like a conclusion he'll come to on his own anyway, problem is the time it takes him to reach it is going to be screwing with your ability to hit quota and make money. That's how I would approach it, I'm sure he just simply hasn't looked too far into the future.

InQ5WeTrust

Arsonist

3

No marketing, mayo isn't an MQL

Hit it on the head there.

Primary concern of mine is looking to numbers for the quarter + next and the implications for series B.

Ahh well tis the game.

DungeonsNDemos

Big Shot

0

Rolling 20's all day

I had to take some time to really think if it was worth even bringing the subject up.
From my experience it was a lack of being able to detach from his baby (the company).
THE VALUE lol

So as long as you have a thoughtful process mapped out of how to discuss this and you think they will be receptive with a logic-based discussion, then you can actually go for it. Depends a bit on your market and goals but if we don't adapt we can die right?

SmashAndGrab

Fire Starter

0

AE

Might be a big old reach but could try asking the CEO to join a call as an exec sponsor, maybe Under the guise of showing the customer some love, where you know pricing will come up? They will feel that first hand (plus you can show off how slick your pitching is)
Other than that, all about those data points baby

Simo

Politicker

0

Director of Sales

Here’s a great book to get for your CEO. They should be able to figure it out for themselves
Monetizing Innovation: How Smart Companies Design the Product Around the Price https://www.amazon.com/dp/1119240867/ref=cm_sw_r_cp_api_glt_fabc_KXC1A57RT155QMSSVZZZ

Justatitle

Big Shot

0

Account Executive

saying the pricing sucks will likely put up his defenses, instead ask if he's been sold to in the past 3-6 months and if the rep would have come out with something wildly out of expectation what his reaction would have been, that is what you are doing with the current pricing structure. you can also have 2 pricing models 1 for enterprise FAANG level companies and 1 for SMB mid-market to meet market expectation.

SalesStash

Opinionated

0

Strategic Account Executive

You walk into his or her office, you slam the door shut, you look directly into their eyes.....pause for dramatic effect....remain calm.....fluff your suit jacket (because they probably make you dress up for work) and say....."Your, pricing, sucks.....Also would you like sugar in your coffee" 😳

CuriousFox

WR Officer

0

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