Pricing and packaging

The highest-leverage number in the business and the least examined. Most companies are underpriced and have never tested it.

The pricing metric

Choose what you charge per before choosing how much. It should scale with the value the customer receives, be predictable enough to budget, and be something they cannot easily game.

Get this wrong and no amount of tuning the number fixes it — a metric that scales with your cost rather than their value creates a permanent argument at every renewal.

Setting the level

Anchor on value delivered, not cost incurred. Cost sets a floor and nothing else.