I understand that many SaaS founders are eager to move quickly and experiment. I've been there...
Is 1 + 1= 1,5 or should it be 3?
A thought provoking conversation recently with a SaaS scale-up I'm coaching.
You can see their solution as a AI based workflow solution, which can be used in different departments.
The case for 1+ 1 = 1,5
When selling to a single department, some advantages emerge:
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the core of the platform is in
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it's easy for us (scale-up) to add an extra workflow later
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up-sell is easier,
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offering a discount for extra similar workflows seems logic
The case for 1+ 1 = 3
When they sell to multiple departments:
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Serving multiple departments is adding substantial value to the organisation
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you are helping different departments, who all should have similar budget for the solution as they extract similar value
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you are adding something extra apart from 2 workflows, you deliver a system that is more mature, as it allows for the management and orchestration of multiple use cases compared to a 1 trick pony.
So which path to choose?
It depends:
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1 + 1 = 3 should be crafted with "land and expand" in mind. The first one is easy candy, easy to start, get them familiar, see the value and want more = if crafted this way - sales will be easier, but your first ticket will be low.
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1 + 1 = 1,5 The initial sale will be harder, sales cycle will take a little longer as first budget is higher. You almost need a visionary buyer in this case that is seeing the future and taking the risk for the rest of the organisation.
In the end it is a nuanced decision, blending product, customer, strategy and vision.
What is your pricing puzzle?