Thought leadership on the art of company building

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Scaling the Revenue Engine — Chapter 9: Pricing and Packaging

Precise pricing powers profit. In Microeconomics 101, you learn that companies should price to maximize the area under the demand curve: Demand curves should be estimated by segment. For a SaaS product, the x-axis (“Price per Unit”) becomes “Price per Package,” with Package indicating the average package for the segment (made up of a defined quantity tier). The y-axis (“Number of Units”) becomes “Number of Customers,” like this: Estimating theRead more

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