In this month’s report, we look at SaaS pricing predictions in price increases, inflation and evolving pricing infrastructure
Oct. 19, 2022
Authors: Bryan Belanger, Colin Naples
Topics that were popular in September 2022
Price increases and inflation remained top of mind for SaaS pricing professionals in September 2022 given the broader macroeconomic environment impacting SaaS broadly. Overarching SaaS pricing evolution to usage-based models is giving rise to a new class of pricing infrastructure startups that primarily serve other SaaS and XaaS companies.
Price increases
- Vendors grappling with approach to price increases
- Most are considering price increases for 2023
- Level of price increase varies; an average range is 5% to 10%
- Most companies are picking the wrong timing and messaging around price increases.
Inflation
- Vendors are struggling with how to accommodate inflation with pricing.
- An obvious option is to increase prices, but this often does not play well with customers
- Some vendors are exploring how to build inflation into longer-term contracts and renewals to mitigate the impacts of inflation going forward.
Evolving pricing infrastructure
- Bessemer Venture Partners released a report on the emerging software stack for PLG companies.
- The report covers two categories relevant to pricing: (1) usage-based billing platforms; (2) configure-price-quote
- As pricing models evolve, so too will the underlying infrastructure and operational processes SaaS companies use for pricing.
Gain early access to weekly newsletters, monthly and quarterly trend reports, downloadable templates and more from XaaS Pricing
Trends we’re monitoring in 4Q22
- Price increase plans for 2023: Will vendors roll out the broader-scale price changes they are currently planning? How will these be messaged relative to inflation?
- Expansion revenue: As new logo acquisition slows for some companies, how will companies revisit packaging, including core plans, add-ons and/or new products, to increase average revenue per account?
- Pricing impact of acquisitions: Adobe’s acquisition of Figma for $20 billion was the main story in September. How will Figma’s pricing strategy be impacted, if at all, now that it is part of Adobe?
- Pace of pricing changes: Will this year be a learning moment, encouraging SaaS companies to more frequently update pricing?
- SaaS pricing transparency and complexity: Pricing complexity and enterprise requirements are losing traction as excuses for not publishing pricing. Will SaaS pricing continue to get more transparent and easier to understand?
Request a free copy of this entire report and the associated XLS data
©2022 XaaS Pricing. All rights reserved. Terms of Service | Website Maintained by Tidal Media Group
