How To Price For B2B | Startup School

Chapters (Powered by ChapterMe) - 00:00 - Intro: B2B pricing tips for founders 01:19 - The Value equation for customer satisfaction 04:15 - Value equation and other elements in pricing 04:28 - Cost and margins in software pricing 05:57 - Investing in low-cost LLMs risks land grab 06:26 - Competiton: Value equation, pricing, differentiation 08:03 - Ask champion: How do you pay for software? 08:17 - Essential pricing tips for successful sales 10:08 - Publishing or contact sales for pricing decisions? 10:25 - Value-based pricing for enterprise customers 11:42 - Pricing strategy dictates sales channels 13:42 - Free trials or Pilots? 14:08 - Push customers to sign up for annual contracts, play strengths as startup 16:42 - B2B pricing summary recap: Value, cost, and differentiation strategies for successful pricing 17:30 - Outro

What I love about this narrative is that it not only teaches me a task with immediately practical tips, it also really improves the quality of the concept of successful product in my mind

Cool. Thank you for this video, Tom and YC! Looking forward to watching the B2C version soon!

Really useful, particularly to those of us who tend to be focused on the technology side.

This was a great video. Thanks again YC!

Great video, quite useful and tailored advice. Quite what I needed atm.

This was amazing, very much needed!

Thank you for the B2B sales videos!

Awesome video! Helped me think different about the current enterprise pricing, I was way underpricing before.

This video came in the right moment, I was struggling with this because need to send a proposal for POC 🎉🎉🎉🎉

Great video. This is exactly what I needed right now. In the video, it gets a bit confusing sometimes when you're on a roll and just throwing out numbers without specifying if they're meant to be MRR or ARR. Other than that, this information will be extremely helpful in the months to come.

Thank you, this is good insight.

Amped up after watching this!!

❤ amezing idea 💡❤

Thanks Tom, you pricing advice are always gold! A maybe naive question, but I'd love to have your take on it. The product is a hot tech topic with a couple of existing players. 2 are doing well but for this particular product, they sell it for free via cloud, and very cheap via API (certainly not 90% margin). Customer discovery says they'd love to pay for something more scalable, more up to date in performance, and which streamlines the complex tech but with a couple of improvements in UX and quality of output. Is it crazy to try to win the differentiation game against free competitors, at least with what appears to be incremental improvements? The alternative is sacrificing this usecase to do something more niche, but that's a pitty because product 1 is a great data acquisition opportunity to bump the performance of usecase 2. Thanks for the advice!

Thank you!

What do you do when a prospect emails you what is the price so we can decide if we want to try it or not?

🔥🔥🔥

GOAT

What about overpricing the software, say 5x and then ask the user how much can they actually pay for? What if the user does not pay for any software, or the ones they use are free and you are coming with a paid option that solves their issues?