Fynn GloverCo-Founder & CEO, Schematic · Co-founder & CEO of Schematic | Runtime monetization infrastructure for SaaS & AI companies

Zach Hawtof, Tightknit CEO on negotiable pricing & maximizing value for the 90% #saas #pricingtips

27 Dec 2024 · 1 min

Watch on YouTube

0:38

In this segment, Zach Hawtof, CEO of Tightknit, explains a negotiable SaaS pricing approach that targets a baseline price suitable for roughly 90% of the customer base while leaving significant upside potential. The strategy involves setting a core price that aligns with the company's mission and serves the majority of users, then applying overage fees or higher pricing tiers for the top 10% of customers who derive extreme value and exceed usage limits. This overage model captures the most revenue from high-value users while maintaining accessibility for the broader market.

Chapters

that's negotiable, that's, uh, and when— and I should jump on what negotiable means. Trying to find a baseline where 90% of your customer base is going to fit into this one price and there's still a ton of upside for them, phenomenal. And for the 10% who see extreme value, that's when you want that overage, right? And then when they hit those limits because they've reached overwhelming success with your product, that's that's when you can really charge more. Those top 10% are going to make you the most amount of money, but the 90% are what gonna— it's what's gonna drive that, like, mission that you've gone out to solve.