Recur Network Blog (Production)

A compact guide to pricing strategy

patrick@priceintelligently.com (Patrick Campbell) — Thu, 18 Mar 2021 09:00:00 GMT

This article is a part of our Protect the Hustle series where we explore the truth behind the strategy and tactics of B2B SaaS growth to make you an outstanding operator.

This was originally posted on "Lenny's Newsletter - Issue 49". I wanted to re-share it here as it's a good, compact primer on subscription pricing.

Top 7 Pricing Strategies: How to Choose the Best Strategy

danette@profitwell.com (ProfitWell) — Tue, 16 Mar 2021 18:06:19 GMT

Too many businesses set their pricing without putting much thought into it. This is a mistake because right from the beginning you are leaving money on the table. The good news is that taking the time to get your pricing right can act as a powerful growth lever. If you optimize your pricing so that more people are paying a higher amount, you'll end up with significantly more revenue that a business who treats pricing more passively. This sound obvious, but it's rare for businesses to put much effort into finding the ideal price.

BRCC—a coffee rich in identity

patrick@priceintelligently.com (Patrick Campbell) — Tue, 16 Mar 2021 09:00:00 GMT

This week we're talking about a brand that some would call controversial, but I don't think they should. It's a brand that has taken a commodity like coffee and imbued an identity, a vibe, a culture into it, as well as patriotism—supporting the troops, law enforcement, veterans, and first responders. That company is Black Rifle Coffee Company.

We'll break down what Black Rifle Coffee Company is doing well when it comes to its monetization, and where it needs improvement. I'll wrap that all into a nice little case study so that you can help your monetization strategy and get it moving in the right direction.

Pricing field notes

Black Rifle Coffee Company's identity and quality have created a lucrative business with estimates putting them over 100 million in annual revenue. This led to many conservative influencers like Ben Shapiro, Tom Lauren, and Sean Hannity aligning with BRCC. BRCC has been successful in building a company culture that many identify with. But is that enough to instill loyalty and make their customers stick around?

Below are some valuable takeaways you can use for your own business.

- Social causes or stances can boost willingness to pay considerably.
  - Don't be afraid to lean into your social cause or stance.
  - People buy these brands for an identity-based reason—amplify or take advantage of that.

- Memberships should go beyond the product.
  - The holy grail of DTC is commerce, community, and content.
  - Wrap those into a membership, and clarify what the community would get.
  - People are willing to pay for these things that go well beyond the product.

- Quarterly, semi-annual, annual plans, these offers help immensely with churn.
  - Optimize for term.
  - Longer-term subscriptions retain customers at a 15-30% percent higher rate than monthly subscriptions.
  - Use offers, not percentages to get customer to upgrade or sign up fo longer-term subscriptions.

Watch the full episode

Ansarada's Sam Riley on intentional culture

patrick@priceintelligently.com (Patrick Campbell) — Tue, 16 Mar 2021 09:00:00 GMT

What does your favorite flavor of ice cream say about you? If you’re a vanilla fan does that signify the plain and basically status quo? How about Neapolitan enthusiasts? Are those just naturally indecisive people, or are they people that want it all? This delectable treat is loved by billions but most people are particular to their own palette or their brand... and I think this tells a story about people.

When you know the the story behind someone’s favorite ice cream, it may not unlock the deepest meaning as far as what makes them tick. But, if you do understand who someone is it can allow you to apply your leadership situationally. Knowing about Bob’s experience as a construction foreman can give you insight into why deadlines are so important to him. Glimpsing into Becky’s time as a line cook reveals why clear expectations drive her productivity. While no two individuals have the same story (or ice cream interpretation for that matter), it’s those collective tales that build an intentional culture.

Hunting whales at ProfitWell (or how we do business development)

patrick@priceintelligently.com (Patrick Campbell) — Thu, 11 Mar 2021 10:00:00 GMT

This article is a part of our Protect the Hustle series where we explore the truth behind the strategy and tactics of B2B SaaS growth to make you an outstanding operator.

This week I want to try something a bit different. I'm going to talk through a problem I'm currently working on—essentially a ProfitWell business case—but I haven't completely bridged the framework for or solution quite yet. I'd love your feedback and ultimately any referrals you can send my way for help (or the positions below). As progress or a solution comes into focus, I'll then share the findings with the community.

Sound good? Awesome. Let's jump in.

What Are Unit Economics? Guide to Unit Economics Models

danette@profitwell.com (Danette Acosta) — Tue, 09 Mar 2021 19:05:02 GMT

Unit economics are often considered one of the foundational building blocks of business, but many business owners don't even know what the term means. In this post, we'll talk about what unit economics are and tell you how you can use this knowledge to expand your understanding of your business. This newfound way to look at your business will allow you to make more informed decisions and increase profitability.

Table of Contents:
1. What are unit economics?
2. Unit economic metics
3. How do you calculate unit economics?
4. What exactly is a 'unit'?
5. Why track unit economics?
6. How unit economics can help growth
7. Best practices
8. FAQs answered

Sarah Hodges on building community

patrick@priceintelligently.com (Patrick Campbell) — Tue, 09 Mar 2021 10:00:00 GMT

Boston has a bad reputation, but it’s a reputation that isn’t completely accurate. It’s more of a misunderstanding. Here’s a little story to explain this: When I first moved to Boston over a decade ago, my first experience was quite a doozy. I’d just gotten off the plane and was on the T—which is the local subway for those of you who don’t know—and with all of my bags I was just cornered there trying to avoid hitting people.

My Midwest sensibilities that I developed in the Wisconsin dairyland would just not prepare me for what came next. Because I accidentally bumped into someone and I responded just like my mother taught me,”Oh my gosh sir, excuse me, I’m so sorry.” Without missing a beat, this masshole turns to me, he takes out one of his headphones and goes, “Why the fuck are you talking to me,” and just moves on with his day.

Is Huel's pricing strategy shakin'?

patrick@priceintelligently.com (Patrick Campbell) — Tue, 09 Mar 2021 10:00:00 GMT

This week we're going into the world of meal replacement. We're looking at Huel—what they're doing well with their pricing, as well as what they're doing not so well, and the things they could improve. We wrap all of that information into a nice little case study, so you can improve your monetization strategy and get your pricing right.

Pricing field notes

Huel's focus on quality and branding has sold more than 100 million meals in over 100 countries. But is Huel's pricing strategy enough to take on the competitive supplement space?

Below are some valuable takeaways you can use for your own business.

- Know which value proposition drives the value.
  - Huel is losing out by generalizing their value proposition.
  - It's crucial to understand early on what your value prop is for a particular user.
  - Collect data in some form.
  - Tailor content around your value proposition.

- Localization is key in such a wide market with consumer products.
  - Know the willingness to pay in different regions.
  - Huel is missing some key price points—they need to change this and take advantage of the differences in willingness to pay.
  - Make it easy for customers. Simply ensuring customers see prices in their local currency goes a long way.

- Optimize social proof for depth to boost value.
  - Use case studies as well as social proof to your advantage.
  - Align these case studies with the value props that have a higher willingness to pay.

Watch the full episode

SaaS Careers: Top Careers in SaaS | ProfitWell

danette@profitwell.com (ProfitWell) — Fri, 05 Mar 2021 02:20:00 GMT

The popularity of the SaaS business model has exploded over the past few years. With that massive growth comes tons of new job opportunities for those looking to get into the software business. In this post, we'll discuss some of the career paths you can take as you start your journey in this rewarding industry, but we'll put most of our effort into our area of expertise: SaaS sales.

Pricing and packaging analysis of Twitter Super Follow—the last shot in the war

patrick@priceintelligently.com (Patrick Campbell) — Thu, 04 Mar 2021 10:00:00 GMT

This article is a part of our Protect the Hustle series where we explore the truth behind the strategy and tactics of B2B SaaS growth to make you an outstanding operator.

A couple of housekeeping notes and summary:

Twelve of you sent me something along the lines of, "I love your content, but what in the world does ProfitWell do?" I'll do a post on this soon, but it's also a good indication that we have a lot of work to do on our product marketing. In short, we have a free subscription revenue metrics product that plugs into your billing system (Stripe, Zuora, Recurly, et al.) and gives you access to all of your financial metrics. Used by 24k+ subscription companies. We then make money through a product that reduces your subscription cancellations (Retain), optimizes your pricing (Price Intelligently), or does your Revenue Recognition (Recognized).
Nine of you let me know that you love the content, but it's too long. My philosophy with this content is I want to give you diamonds. They're dense and sharp, but dagnabbit are they beautiful. I cut a lot of fat out of these and I don't mind making your brain hurt in a good way. If they're wordy—check out the audio version or follow me on twitter where I post a summary typically.
Keep the feedback coming. I reply to every single one. : )
The following post is on Twitter's decision to enter the subscription world. I've been talking about this for quite some time (as has Scott Galloway, and plenty of Twitter team members have been trolling those posts, so I hope I helped ;)), but to me this is the perfect move and it's not because of the obvious stock market reasons. Let's jump in.