Introduction

In today's competitive B2B SaaS landscape, pricing and packaging strategies are critical for success. We sat down with Bill Wilson, a software engineer turned founder, turned pricing expert, who now leads Pace Pricing. Bill shared his journey from coding to becoming a monetization coach to founders and executive teams and offered valuable insights into the complexity & practice of SaaS monetization.

From Engineer to Pricing Expert

Bill Wilson’s career began as a software developer, working for major software companies like Quest. Bill's an entrepreneur at heart and eventually decided to venture into consultancy, founding MindSea, an agency that built mobile apps globally, which he ran for ~13 years.

During his time at MindSea, Bill developed a unique sales technique involving a productized service offer, which led to the creation of an interactive quoting tool. This tool garnered interest from many B2B SaaS companies, prompting Bill to launch SalesRight in 2018.

For Bill, the tool’s success highlighted the pressing need salespeople have to control pricing & packaging flexibly. After being acquired by FastSpring in 2020, Bill founded Pace Pricing, a B2B SaaS monetization agency, where he coaches founders and executives on their pricing & packaging.

Trends and Inflections in Enterprise SaaS: Hybrid Pricing & Multi-Product

Bill discussed significant changes in the SaaS industry, emphasizing the shift towards hybrid pricing models that combine subscription and usage-based billing. This hybrid approach is increasingly common, because it often aligns pricing with customer value & with multiple product offerings, which in turn helps companies increase net retention over 100%.

Building Pace Pricing

Pace Pricing caters to B2B SaaS companies ranging from startups to those generating hundreds of millions in revenue. Bill’s approach involves a deep dive into data, market research, customer insights, and rigorous validation processes. By understanding customer behavior and aligning pricing models accordingly, Pace Pricing helps companies optimize their monetization strategies.

Common Mistakes in SaaS Pricing

Bill highlighted several common mistakes early-stage companies make, such as giving away products for free and overcomplicating pricing models. He stressed the importance of charging customers to ensure they value the product and designing pricing structures to match the delivered ROI.

For growth-stage companies, Bill noted that not changing prices over time is a major pitfall. Stagnant pricing can lead to decreased value perception due to inflation and market dynamics. Additionally, companies often shy away from seeking help, which can impede their pricing strategy development.

Misconceptions around Pricing and Packaging

A prevalent misconception is that pricing is solely about what to charge. Bill emphasized that how companies package & enable a customer to buy is often more important than the end price. Effective monetization strategies involve understanding customer value and aligning pricing models to match. Another misconception is that packaging design alone can solve pricing issues, whereas a holistic approach considering product changes and market alignment is necessary.

Advice for Engineers and Product Leaders

Bill advised engineers and product leaders to adopt subscription management & entitlement services early so that their businesses can evolve monetization with flexibility and control without requiring significant engineering support. This approach minimizes technical debt and allows for agile pricing adjustments, supporting go-to-market creativity.

Understand your value; Monetize accordingly

Building pricing & packaging discipline into your company requires a methodical, data-driven approach. Bill’s journey from software developer to pricing coach provides underscores the interconnectedness of software and the ways in which it is priced & packaged. For Bill, the critical work to be done is understanding the value you provide your customer and aligning your monetization strategies accordingly.

Learn More about Bill

For SaaS companies looking to optimize and mature their pricing & packaging, Pace Pricing offers the expertise and services needed to drive growth & reduce churn. To learn more about Bill Wilson and Pace Pricing, visit PacePricing.com or connect with Bill on LinkedIn and X (@WDRWilson).