Frictionless implementation of new pricing and packaging in SaaS with Fynn Glover @Schematic

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In episode #38, Anna Nadeina talks with Fynn, Co-founder & CEO of Schematic, a solution that allows businesses to quickly integrate pricing and packaging into their application with a few lines of code.

Pricing is more than just a number; it reflects the value your service provides and influences customer perceptions. As Fynn Glover, Co-founder & CEO of Schematic, points out, the landscape of pricing has become more intricate, especially with the rise of AI and varied business models. Companies must adapt their pricing strategies to align with customer expectations and market demands.

Who Owns Pricing?

When discussing pricing strategies, a common question arises: who should own pricing within an organization? This varies depending on the company’s stage. In early-stage startups, pricing often resides with the founders or the CEO. However, as companies grow, establishing pricing committees that include representatives from sales, product, and engineering becomes essential. This cross-functional approach ensures that all perspectives are considered when making pricing decisions.

The inception of schematic: a response to pricing challenges

Fynn’s journey into the world of pricing began with his first company, where he learned valuable lessons about the pitfalls of pricing and packaging. After experiencing significant delays in implementing pricing changes in a high-growth environment, he recognized a critical gap: the need for a streamlined solution to manage pricing complexities. This realization led to the founding of Schematic, a platform designed to simplify the integration of pricing and packaging within SaaS applications.

The role of entitlements

One of the core issues Fynn identified was the complexity surrounding entitlements—defining what customers have access to based on their subscriptions. Traditional methods often tied entitlements closely to application code and billing systems, creating significant technical debt. Schematic aims to decouple these elements, allowing businesses to iterate on pricing without relying heavily on engineering resources.

Target audience and sales strategy

Understanding your target audience is crucial for effective pricing. For Schematic, the ideal customer profile (ICP) primarily includes early-stage, venture-backed startups. These companies often face complex pricing models from the outset, making them a perfect fit for Schematic’s solution. By focusing on CTOs and product leaders, Schematic addresses the pain points of engineering bottlenecks and the need for agility in pricing adjustments.

Pricing strategies in a competitive market

When it comes to pricing strategies, flexibility and adaptability are key. Fynn emphasizes the importance of willingness-to-pay conversations with potential customers. By understanding how much customers value their offerings, companies can establish a pricing model that resonates with the market. This approach not only enhances customer satisfaction but also drives adoption.

Lessons from previous ventures

Fynn’s experiences from his earlier ventures have shaped his approach to pricing at Schematic. He learned that product-market fit is a spectrum, not a destination. This realization has influenced his ongoing pricing discussions, ensuring that Schematic remains responsive to customer feedback and market shifts.

The Balancing Act of Pricing

Finding the right pricing balance is a continuous process. Fynn advocates for regular reviews of pricing structures based on sales data and customer feedback. This iterative approach allows companies to stay competitive and responsive to market changes while avoiding stagnation.

Implementing pricing changes successfully

Implementing pricing changes can often be a daunting task. However, Schematic aims to alleviate some of this friction by providing tools that empower non-technical stakeholders to make pricing adjustments effectively. This shift enables businesses to be more agile and responsive without overburdening their engineering teams.

Creating a seamless experience for developers

When selling to developers, it’s essential to build credibility and trust. Fynn emphasizes the importance of technical documentation, exceptional user experience, and community engagement. By ensuring that developers find value in Schematic’s offerings, the company fosters a collaborative environment that encourages adoption and reduces objections related to in-house solutions.

Overcoming developer objections

One significant challenge when selling to developers is addressing their inclination to build solutions in-house. Fynn suggests reframing these conversations by asking probing questions about their motivations to build rather than buy. By understanding their needs and concerns, Schematic can position itself as a valuable partner rather than just a vendor.

Building a sustainable business model

As Fynn reflects on his previous experiences, he acknowledges the importance of sustainable growth. Companies must balance their pricing strategies to ensure profitability while remaining accessible to their target audience. This delicate balance is crucial, especially in the highly competitive SaaS market.

Continuous learning and adaptation

The journey of implementing effective pricing strategies is ongoing. Fynn emphasizes the need for businesses to be open to learning and adapting their approaches. By regularly assessing market conditions and customer feedback, companies can refine their pricing strategies to better align with evolving expectations.