The Interest Rate on Your Customers
A 15% annual prepay discount looks generous. Run the math and the implied annualized cost is closer to 18% — credit-card rates, paid to your own customers.
Angle
Pricing
8 posts
Your Pricing Page Is a Sales Tool, Not a Disclosure
Four tiers, three buttons, a nineteen-row matrix, and a footnote about overages. Conversion rose about a quarter after cutting to two tiers, one button each.
Free Trials Cost More Than Sales Reps
Fifteen thousand trials a month, converting at 3.4%. Fully loaded, each converted trial cost more than the SDR team spent to qualify a lead.
The Discount Nobody Tracked
Every deal closed with something shaved off, and none of it hit a dashboard. By year-end the discounts totaled twelve percent of revenue.
Your logo wall is a liability
Marquee logos landed at a third off, renewed flat, and never wrote the promised case studies. The logos cost more than they ever returned.
Signups rose 30%. Revenue fell 12%.
The A/B test found a lower price that converted better. It converted the company into a worse business, and the tool reported a win the whole way down.
Stop Pretending the Discount Is a Concession
Every deal closed at twenty percent off. Two years later, list price was fiction nobody believed, and raising meant renegotiating the company's own revenue.
A $4M raise bought 18 months of being wrong
They raised $4M to fix a sales problem that turned out to be a pricing problem. The money bought eighteen months of being wrong, with more conviction.