API business value based pricing
As early-stage enterprise software investors with an obsession with go-to-market strategy, Work-Bench has worked with dozens of enterprise founders and sales leaders navigating the tricky process of pricing.
At the early stage, most founders are tempted to underprice their product in order to win early deals (and compete with legacy vendor’s higher pricing). However, it’s important to thoughtfully create a pricing framework that can scale with your product and go-to-market motions over time.
We dug in with revenue leaders from some of our later stage, fast growth companies to answer: What did you do right in the early days of pricing? What do you wish you could do differently? What would you advise other early stage companies?
This Enterprise Playbook focuses on the top tactic we uncovered: A value-based pricing calculator, specific to a company that utilizes API calls. By creating a structured process by which to calculate their ROI and thus pricing, the company’s sales team is set up to be confident in how they articulate value to customers and quote a contract value to prospects.