The end of the Superhuman era
Jan 16, 2024
Marginally better products with premium pricing became a much harder sell. The delta between the value your product offers and the price you charge needs to be large and obvious. You need to sell significantly better software at a competitive price.
In recent years we saw steep inflation of seat prices. From a typical baseline of a few dollars per seat to a new standard of $20-30 per month. Combined with aggressive growth tactics for expansion of seats, this fueled SAAS revenue growth.
I believe we're going to see a reset of baseline prices and more creative value based pricing. Inflated prices and stale seats can give frugal startups a competitive edge to deliver more value for less. In a market of much more price-sensitive buyers, you need to be more careful that your pricing will not hurt early adoption. Reasonable and value-based pricing can help you build an early wedge and win over customers.