Tip 5: Usage Based Pricing During Times of Economic Downturn
In times of economic downturn, retaining customers becomes crucial for businesses. In this episode, our experts discuss the benefits of implementing usage-based pricing as a flexible solution to meet the ever-changing needs of customers during early, mid, and post-recession phases. Learn how this adaptable pricing model can help you weather the storm by providing your clients with a customizable and cost-effective option. Packed with practical advice and real-life examples, this episode offers a valuable guide to adapting your pricing strategy to stay afloat in challenging economic times. Don't miss this essential episode on the power of usage-based pricing in uncertain times!
Welcome to 20 days of pricing tips—part 5. I’m Zach, a member of the pricing team and I’ve worked on 27 pricing projects.
There’s chatter everywhere of the looming recession, so today’s pricing tip is focused on Usage Based Pricing during times of potential economic downturn.
Usage based pricing aligns value to usage, a direct comparison that buyers naturally evaluate when looking at traditional SaaS pricing models.
First and foremost, retention is imperative - charging users only for what they need offers them flexibility. Users can scale up or down as the needs of their business change from early- to mid- to post-recession. Offering this level of flexibility and putting cost control into the user’s hands will help put your business at the bottom of their audit list come recession time.
Now switching gears, offering a heightened level of flexibility does come with some trade offs - revenue for your company is now less predictable. Make sure your forecasts stay on the conservative side while building out a robust cash runway.
Thanks for checking out our pricing tips. If you want to connect with our pricing team email Patrick@profitwell.com and we’ll send over the intro.
