Here is an exhaustive teardown of how three well-known SaaS players test, learn, repeat, and ace their pricing games. Unless you are willing to go beyond the existing notions and dig more into the value that your customers find in your offering, you will not be able to get your pricing strategy on point. And as expected, it won over the audience. ![]() Wiedeking’s team nodded, smiled, and went ahead and launched the coupé for €58,529. With the help of Simon-Kucher & Partners, a German consulting firm, they carried out an extensive global research.Īnd the results were worth the effort indeed – they indicated that Cayman should be priced, not 10% cheaper, but rather 10% costlier than Boxster, as the consumers were found to value the former more than the latter. He wasn’t fond of going behind the industry norms and instead wanted to dive explore the value-based pricing philosophy. ![]() He’s often called the Saviour of Porsche, for the right reasons. To give you a bit of background, Wiedeking assumed his role as the CEO in 1993, when Porsche was close to bankruptcy and was declared to be unfit to survive on its own by analysts.Īnd within two years, he turned the tables with his dynamic guidance, kicked off Porsche’s rise to fame. A no-brainer, they felt.īut Wendelin Wiedeking, the then CEO of Porsche, had other plans. With the Boxster costing around €52,265, the industry standard pinned Cayman at a price point of around €47,000. The market data was clear-cut – all coupés were priced 7 to 11% less than their convertible counterparts. And it was time for the team to tackle the next big question – how much should we sell it for? The German carmaker’s uncompromising standards ensured that the product was impeccable. In the 2006 model year, Porsche came up with Cayman, a coupé based on their convertible, Boxster. We don't try to sneak it in.The important thing is to never stop questioningīlindly following the industry trends is pointless, as we’re all unique snowflakes. Let me finally point out, that we have been completely open and transparent about the price changes. Some customers may experience disproportional price hikes due to earlier introductory discounts, and we will look into these accounts on a case-by-case basis. The price per agent has gone up with $10 and $20 on the Regular and Plus+ plans respectively. And we do offer to grandfather our existing customers for one additional year at their current price point with all of their current functionality grandfathered indefinitely. But we do think that we have an excellent offering for almost every budget starting at $9 per agent seat. Zendesk is investing heavily in new features and our customers will continue to experience great things with Zendesk. Zendesk has gone from a traditional ticket management system to a complete customer engagement platform, supporting 1-to-1, 1-to-many and many-to-many customer conversations and support interactions. But we have added new functionality to the service for every week for the last two and a half years.Īnd today we're launching a lot more functionality for knowledge base and community support. This is the first time EVER that we have increased pricing. We now have three plans at three different price points (starting at $9). Yes, we are raising our prices on two of our plans. UPDATE: Svane responded to us with this statement: We've contacted Zendesk CEO Mikkel Svane for more insight and hope to hear back soon. How can you explain a price increase of more than 300% for a service that you're far from the only one to provide? Zendesk doesn't even really do that, they've just communicated the new fees and keep pointing customer who complain to the grandfathering terms, which do not explain the rationale behind the price hikes either. But in this case, perhaps Zendesk would have been better off checking exactly how profoundly these changes would affect the bills of their early customers. ![]() ![]() I've also managed to find someone who was actually happy with the transparency Zendesk displayed in its email to customers, so maybe we're just hearing the voices of the angry here.Īgain, it's fine for startups to make money, even if it means they need to change their pricing plans and hike fees at some point. This seems extortionate, we are facing a 100%+ increase ,what are you playing at Zen Desk?
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