🌟 Editor's Note
Hi, I’m Peter — Senior Pricing Strategist at Pricing I/O.
Welcome to The Monetization Memo — your monthly dose of sharp, practical insights on SaaS pricing and packaging.
You’re receiving this because you’ve worked with us before or expressed interest in leveling up your pricing strategy. Either way, I’m glad you’re here.
Here’s what you can expect in each edition:
Exclusive Pricing Strategies – Practical, proven tactics to help you capture more revenue
Pricing Trends – My take on what’s happening in SaaS pricing and why it matters
AI Pricing Corner – How to use AI to accelerate smarter monetization decisions
Real-World Case Studies – How companies are tackling tough pricing challenges
This newsletter hits your inbox once a month. No fluff — just high-signal, actionable insights to help you grow revenue with confidence.
🚀 Signs You Are Underpricing Your Product
Knowing when to raise prices and by how much is one of the hardest questions in SaaS. Leaders regularly put off price increases due to fear over pushback. Don’t let guesswork be your guide.
Data signals you are underpriced:
Fewer than 20% of prospects push back on pricing: Not losing any deals due to price levels is a problem, not a virtue.
You haven’t raised prices in two years: Your product value has almost certainly increased in the last two years. Pricing should be adjusted ideally once a year.
Low churn and high NPS: Delivering value to happy customers makes it much easier to raise prices. People don’t mind paying more for a great product that works. Had an outage recently? Hold off on the increase for now.
🏆 Case Study: I Want The Same Price
A customer asked us recently “Can we get the same price from 2022?” It’s a fair question—but let’s think about it:
🍳 Imagine walking into a grocery store and asking for 2022 egg prices.
🎢 Or trying to get into Disneyland on a 2022 ticket.
📺 Or paying Netflix’s old rates.
Unless you’re a hot dog at Costco, prices go up. When we explained this to the customer, they got it.
No harm in asking—and no harm in saying no, as long as you do it with clarity and confidence. The conversation moved forward, and the deal stayed alive.
✅ Be firm but fair.
✅ Give real reasons.
✅ Stand behind your pricing with confidence.
Where companies get into trouble is with multiple rapid-fire increases or charging extra for what should be core functionality.
One thoughtful price change per year? That’s a solid place to start. If your product delivers value, customers will pay—and respect you more for owning the decision.
🚫 It's not 2022 anymore. And that’s okay.
🔮 AI Pricing Corner
One of AI’s strongest use cases right now is search on steroids. Competitive research is the place we spend the most time on web. We used to spend a dozen hours per competitor clawing through G2, reddit, industry forums, and literally anywhere we can find pricing intel.
Now AI does it all for us. Take Zoominfo for example. Very little information on the pricing page.
This is just a snippet of what I got from ChatGPT. Real price points, with sources and details. We will see if there is any value in having private pricing now that AI scraping is so good.
🔥 In Case You Missed It…
Monetization News Roundup
Spotify is raising prices and offering a new plan without audiobooks.
After not raising prices for 8 years Spotify has raised prices twice in a year.
Lesson: you should be adjusting your pricing every 1 to 2 years to keep up with the value you are adding.
Teams has gone from an inclusion to an add-on to the Microsoft bundle.
Lesson: don't overstuff your bundle with products or features many customers won't use.
🏆 Best Reads
Tomas Tungaz - The Complete Guide to Pricing Strategy
In "The Complete Guide to SaaS Pricing Strategy," Tomasz Tunguz outlines three primary pricing strategies for startups:
Maximization (Revenue Growth): Setting prices to maximize short-term revenue, suitable when customer segments have similar willingness to pay.
Penetration (Market Share): Offering lower prices to quickly gain market share, often leading to a land-and-expand approach.
Skimming (Profit Maximization): Starting with high prices and gradually introducing lower-priced options to capture different customer segments.
Key Takeaway: Choosing the appropriate pricing strategy—Maximization, Penetration, or Skimming—requires aligning with your company's goals and understanding your market dynamics to effectively drive growth and profitability
“Technology isn't just about the latest gadget—it's about solving real-world problems that can genuinely improve people's lives.”
🔉 Recommended Listens
Don’t Procrastinate on Pricing - Rob Walling on The Street Pricing Podcast(Apple | Spotify | Youtube)
“Pricing power is the most important factor in evaluating a business” - Warren Buffett
Go Capture Value,
