Product managers should own packaging in B2B SaaS, not just pricing. Deciding which features to bundle, picking the value metric, and segmenting customers directly shapes ASP, ARR, and retention. PMs already think about feature sets and fit, making them the right team to ground every product decision in clear value exchange.
Chapters
I think because the modeling skill sets sit in Strat and Finance, kind of like the FP&A function really fits nicely with how you might test different pricing models. So I think it makes sense from like a skill set perspective. I like it better in Product because I actually think the pricing piece is not the hardest part of it. It is the packaging piece is the hardest part of it. It is actually How do you throw a rope around the right set of features to capture the right kind of value? How do you price different segments that may assign different values to a meter you want to keep consistent, but ultimately get the same ROI? Like, I just think there's a lot of like packaging problems that people underappreciate. What's the right metric? Not from a COGS perspective, but what's the right metric from a value perspective? Can we measure it? Does it apply across products? All that kind of stuff. And I think a product thinker can be quite good, good at that. I think it's good in product because every time you introduce a product, especially I think at our stage or in a B2B company, if a product manager is like, oh, I think it would be nice to build this feature, that's fine. But if a product manager's like, I think it would be nice to build this product, which I think, I think of as a broader thing. And their immediate next thought in a B2B context is because I think this is the budget we can capture and this is the value I think people will assign to it. And so I think we can drive up ASPs or net new ARR or retention or whatever. It has to have exchange of value. And so I think coming to B2B product management with a really strong packaging lens to it really forces you to confront the commercial reality of the, products you're building. Yeah. And so I think it's nice to have it in product management.
