Pricing Strategy Analytics

For many companies, business growth feels like a black box from a pricing standpoint. Yes, we see the aggregate numbers, but we rarely know why exactly we’re growing. Is it higher prices? Less discounting? More units sold? Different customer and product mix? Or are rising costs eating into margins? I just put together a short walkthrough of our Growth Drivers Analysis template, which tackles these questions by analyzing data at the customer-product level (where invoicing and sales activity happens). Here’s why it matters: 1. Pinpoint Margin Changes: In a high-inflation and high-tariff environment, knowing exactly which levers - price, volume, cost, or mix -drive your gross profit is mission-critical. 2. Surgical Actions: By isolating price vs. volume vs. mix, you can focus on profitable customers/products, address unnecessary discounting actions, reactivate lost business, or upsell products to existing customers. 3. Net Price Realization: Ever wonder why a 15% list price increase only has a 5% net price impact in reality? Our template shows you the effectiveness of your pricing strategy so you can make informed adjustments. If you want a deeper dive, check out the video walkthrough and Excel template I’ve shared below. It walks you through the critical tabs: - Net Revenue Growth Deep Dive (price impact, volume impact, new vs. lost business) - Gross Profit Deep Dive (cost integration to see margin growth drivers) - Net Price Realization (how much of your intended price increase % stuck) Curious to learn more? Download the workbook in the comments, and feel free to reach out with questions or feedback. As much as we can, let's make sure we’re all basing pricing decisions on meaningful insights, not guesses. #GrowthAnalysis #revenue_growth_analytics #FinancialAnalysis 

Inflation isn’t just an economic challenge—it’s a test of agility for businesses. As costs rise and purchasing power shifts, companies that rely on gut instinct risk falling behind. The real winners? Those who use data-driven insights to navigate uncertainty. 1️⃣ Understanding Consumer Behavior: What’s Changing? Inflation reshapes spending habits. Some consumers trade down to budget-friendly options, while others delay non-essential purchases. Businesses must analyze: 🔹 Spending patterns: Are customers shifting to smaller pack sizes or private labels? 🔹 Channel preferences: Is there a surge in online shopping due to better deals? 🔹 Regional variations: Inflation doesn’t hit all demographics equally—hyperlocal data matters. 📊 Example: A retail chain used real-time sales data to spot a shift toward economy brands, allowing it to adjust promotions and retain price-sensitive customers. 2️⃣ Pricing Trends: Data-Backed Decision-Making Raising prices isn’t the only response to inflation. Smart pricing strategies, backed by AI and analytics, can help businesses optimize margins without losing customers. 🔹 Dynamic pricing models: Adjust prices based on demand, competitor moves, and seasonality. 🔹 Price elasticity analysis: Determine how much a price hike impacts sales before making a move. 🔹 Personalized discounts: Use customer data to offer targeted promotions that drive loyalty. 📈 Example: An e-commerce platform analyzed customer behavior and found that small, frequent discounts led to better retention than infrequent deep discounts. 3️⃣ Demand Forecasting & Inventory Optimization Stocking the right products at the right time is critical in an inflationary market. Predictive analytics can help businesses: 🔹 Anticipate demand surges—especially in essential goods. 🔹 Optimize supply chains to reduce excess inventory and prevent stockouts. 🔹 Reduce waste in perishable categories like F&B, where price-sensitive demand fluctuates. 📦 Example: A leading FMCG brand leveraged AI-driven demand forecasting to prevent overstocking of premium products while ensuring budget-friendly variants were always available. 💡 The Takeaway Inflation isn’t just about rising costs—it’s about shifting consumer priorities. Companies that embrace data-driven decision-making can optimize pricing, fine-tune inventory, and strengthen customer loyalty. 𝑯𝒐𝒘 𝒊𝒔 𝒚𝒐𝒖𝒓 𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝒂𝒅𝒂𝒑𝒕𝒊𝒏𝒈 𝒕𝒐 𝒊𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏𝒂𝒓𝒚 𝒑𝒓𝒆𝒔𝒔𝒖𝒓𝒆𝒔? 𝑨𝒓𝒆 𝒚𝒐𝒖 𝒖𝒔𝒊𝒏𝒈 𝒅𝒂𝒕𝒂 𝒕𝒐 𝒓𝒆𝒇𝒊𝒏𝒆 𝒚𝒐𝒖𝒓 𝒔𝒕𝒓𝒂𝒕𝒆𝒈𝒚? 𝑳𝒆𝒕’𝒔 𝒅𝒊𝒔𝒄𝒖𝒔𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒄𝒐𝒎𝒎𝒆𝒏𝒕𝒔! #datadrivendecisionmaking #dataanalytics #inflation #inventoryoptimization #demandforecasting #pricingtrends

Uncomfortable Truth for Pricing Strategy: Customer value isn't guesswork. Think pricing is all about costs? Think again. Online value research reveals what customers truly value and are willing to pay for. Here's what happens when companies embrace value-based pricing: → True Value Discovery A vending machine company discovered untapped value in their premium service and better-quality product. Result? $40M additional annual revenue with no loss in sales. → Customer Understanding One dashcam manufacturer found that women had completely different value drivers than men and were willing to pay 25-30% more. Understanding this doubled their projected sales. → Market Segmentation By matching prices to different market segments' willingness to pay, a corporate training provider drove 40% revenue growth. → Consistent Results Our client successes show the power of value-based pricing: - SaaS company raised prices 41% without losing customers - Streaming service doubled revenue through strategic pricing - Industrial components manufacturer grew sales 20% while raising prices 15% The truth? When you understand true customer value, pricing becomes your most powerful growth lever. Are you ready to let data drive your pricing decisions? #PricingStrategy #BusinessGrowth #ValueBasedPricing

Back when the AI boom first kicked off, most startups defaulted to usage-based pricing: charging per token, message, or API call. Simple, familiar (like AWS), easy to ship. But as inference costs plummet this approach is becoming a dangerous race to the bottom. The reality is customers care about outcomes and business value. How you charge is becoming as important as what you build. We’re seeing 4 distinct pricing models as companies move away from pure consumption-based approaches: 1 - Activity-based pricing (pay per use): The default approach we've all seen, charging by tokens or compute usage. It mirrors cloud services but ultimately treats AI as a commodity. 2 - Workflow-based pricing (pay per workflow): Instead of raw usage, you price the completion of structured tasks. An AI drafting and sending an email might cost $0.10 regardless of tokens used. 3 - Outcome-based pricing (pay per result): Customers pay only when a desired outcome is delivered. Companies like Intercom and Zendesk are pioneering this with per-resolution pricing. 4 - Per-agent pricing (pay per "AI employee"): Bill an AI agent like a SaaS seat or virtual hire with a flat monthly fee. This brilliantly taps into headcount budgets, much larger pool than IT budgets (see Joanne’s “Software-as-a-Service”). The further you move from consumption-based pricing toward value-based models, the stickier your product becomes. Pricing strategy IS product strategy. Build it in early, not as a bolt-on later.

People sometimes ask if we can optimize the price of a vehicle configuration. The answer is yes... but only if we are optimizing the right thing. It is not the price itself that needs to be optimized. It is the pricing strategy. That might sound like a small shift in framing, but for a company like Toyota, it changes everything. The price we post for a Camry SE with the Cold Weather Package is not a static decision. It is the result of a dynamic environment. Incentives change. Competitor offers change. Region-specific demand shifts. A $1,000 cash incentive might make sense in the Midwest in January, but that same move could be counterproductive in California in March. Trying to find “the right price” for every trim, every option, every region is like trying to hit a moving target in the wind. But designing the right pricing logic is where we have control. A pricing strategy is a set of rules. It is a policy that tells us, given current inventory, regional demand, competitor activity, and cost structure, how to set prices and incentives. That is the decision. That is what we can actually test and learn from. At Toyota, we want to be able to run that test. If we are unsure whether Strategy A (which discounts aging inventory aggressively) performs better than Strategy B (which protects margin until a unit hits 60 days), we can assign them to different regions or vehicle lines. Let them run. The individual prices will fluctuate based on the logic. What we care about is which strategy drives better sell-through, higher profit per unit, or more efficient inventory turns. We are not trying to lock in the “right” incentive amount. We are trying to learn what decision policy works best in each market condition. In Sequential Decision Analytics, we do not focus on a single number. We focus on the mapping: how do we move from information to action in a way that adapts with uncertainty? We do not optimize answers. We optimize policies. And when we do that well, we stop guessing. We start learning. And we gain a system that gets smarter with every vehicle we sell. #ToyotaSupplyChain #PricingStrategy #DecisionIntelligence #SequentialDecisionAnalytics #PolicyOptimization #InventoryManagement #ABTesting

At $10M+ ARR, You are losing money. Not because of bad product, But because of bad pricing. Why pricing? → Competitor pricing weakens positioning → Pricing doesn’t match customer value → Customers stay on the cheapest plan → No upsells, no expansion revenue → Too few users on annual plans → Enterprise deals lack flexibility → Pricing is never tested Lack of pricing strategy directly affects your revenue. Here are 7 steps to fix it. 1. Audit pricing by revenue segment → Where is pricing suppressing upgrades? 2. Reposition pricing against competitors → Own a category, not just a price point. 3. Expand revenue streams → Upsells, add-ons, usage-based models for high-value users. 4. Charge based on value, not just cost → Align pricing with impact and willingness to pay. 5. Move customers to annual → Build ACV and retention with incentive-based annual pricing. 6. Enable enterprise flexibility → Custom contracts, volume discounts, and deal-based pricing. 7. A/B test pricing regularly → At this scale, small price shifts = millions in ARR gains. At $10M+, pricing isn’t just a strategy, it’s a competitive advantage. P.S. How often are you testing your pricing strategy? ♻️ If you find value, let others benefit too. __________________________________________ Ready for more SaaS pricing insights? Follow me, Marcos Rivera🔔

Are you leaving money on the table? Your revenue model defines what you monetize. But it’s your pricing strategy that decides how well you actually get paid. Right revenue model + wrong pricing strategy = underpaid, every time. Dropped a carousel breaking down the most common SaaS revenue models. But that’s just step one. Step two is to modernize how you price that value. And as AI drives down the cost of code, two pricing strategies are gaining ground: 🔁 𝗖𝗼𝗻𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻-𝗯𝗮𝘀𝗲𝗱 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 Used by 60%+ of B2B SaaS. → Charges based on actual usage, not seats. → Scales naturally with customer growth. → Lowers adoption friction. Twilio bills per SMS or call. AWS charges per GB or compute hour. Dispatch prices based on service jobs processed. 📈 𝗢𝘂𝘁𝗰𝗼𝗺𝗲-𝗯𝗮𝘀𝗲𝗱 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 Still under 5% adoption, but growing in enterprise. → Tied directly to results like ARR, savings, or churn reduction. → Aligns your revenue with customer success. LinkedIn - applicant volume, hire rates, or response rates Snowflake - internal adoption and decision velocity Gainsight - business KPIs (NRR, churn) If someone bought your SaaS tomorrow, 99% of the time: → Pricing is at the top of the list of changes they'd make. It's a higher-leverage growth lever than doubling your pipeline. Still charging like it’s 2020? 💰 Packed a tactical bundle to pressure test your pricing. [check the comments 👇] #saas #startups #founders #revenue #pricing #strategy

Most product teams don't know their pricing model is broken until it's too late. Revenue is flat. Deals are stalling. And you're wondering what went wrong. A couple of weeks ago, Supra hosted Marcos Rivera (founder at Pricing I/O), who has helped hundreds of companies capture a combined $400M in additional ARR. According to Marcos, there are 6 hidden signals that can tell you it's time to revisit your pricing - long before you see the impact on revenue. 1/ No one asks for discounts (20% or less) Counterintuitive, right? If customers always pay full price without negotiating, you're likely underpriced. Your value exceeds your pricing. 2/ Deep discounting is common (30-50% off) This isn't just about being expensive. Often, it means you're selling the wrong thing to the wrong customer. You might need a leaner entry plan or better value framing. 3/ Little revenue from expansion (< 20% of new MRR) If customers aren't buying more after their initial purchase, your packaging needs work. Your value metric might be wrong, or your expansion path isn't clear. And in SaaS, expansion revenue is often the difference between good and great companies. 4/ Everyone stays in the entry plan When 80%+ of customers stay in your lowest tier, either: ↳ Your entry plan is too generous ↳ The jump to the next tier is too big 5/ High churn This screams value-price misalignment. But look deeper - are customers struggling to realize value quickly enough? 6/ Low close rates (<20%) Your pricing might be turning off prospects before they even try your product. Often, this means your pricing model is too complex. Marcos recommends to not wait for multiple signals. Even one of these is reason enough to review your pricing strategy. What other signals would you add to this list?

Net Revenue Retention is correlated to pricing model - but so what? Based upon data from 301 B2B SaaS companies here is what we found: 👉 Usage-Based Pricing as the primary pricing model results in the highest percentage of companies with > 120% NRR (33%) 😢 Traditional subscription pricing models result in the highest percentage of companies with < 100% NRR (48%) - traditional subscription pricing also results in the largest percent of companies (65%) with NRR in the 101% - 110% range 👉 Hybrid pricing models are used by 26% of companies with >120% NRR - while AT THE SAME TIME represent the companies with growth rates > 30% - 36% of companies growing faster than 30% use hybrid pricing with a subscription + usage elements 👉 Pricing strategy plays a pivotal role in shaping how SaaS companies grow - pricing should not be a "side-project" 💡 make pricing a strategic, cross-functional program...maybe even consider investing early in a pricing leader that does not also own a function ⚠ Do not use a "set it and forget it" model - continuously evaluate and experiment with pricing models - especially in early stage companies or with new product introductions or new target segments 🤯 Google experimented with many different pricing models early in their life cycle - seems to have worked out 🌟 Align pricing model to your top financial metrics and business strategy - Reduced customer acquisition friction says Usage-Based - Early stage monetization and revenue growth says subscription - Growth stage suggests a hybrid pricing model to maximize growth - Higher NRR says use pure Usage-Based pricing 🦉 I am not a pricing expert - but the recent benchmarking research highlights that pricing model has direct impact on multiple, yet different performance metrics 🚧 Having the ability to deploy, bill, report and manage performance metrics that are highly correlated to pricing model requires more investment in pricing strategy and billing infrastructure than ever before #b2bsaas #benchmarks #metrics

If you’re not tracking real-time pricing signals, you’re making blind decisions in a volatile market. Let me explain. 👇 Tariffs, supply chain shifts, and aggressive discounting are creating pricing chaos across durable goods. The brands that win won’t be the ones reacting last…  They’ll be the ones anticipating where the market is moving before their competitors do. With Competitive Pricing Intelligence, you can: ✔ Monitor same-day price shifts in key product categories to get ahead of sudden increases. ✔ Track competitor promotions to see who’s absorbing costs vs. protecting margins. ✔ Identify SKU-level price discrepancies across retailers to optimize your pricing strategy. ✔ Adjust regional pricing and inventory placement to maximize profitability. ✔ Understand consumer price elasticity to know how much room you really have to adjust. If your competitors are adjusting prices and you don’t know why, you’re already behind. Read the full report to see how leading brands are staying ahead: https://lnkd.in/eStrM9NH #PricingStrategy #CompetitiveIntelligence #MarketData #RetailAI