Case Study - Mensch und Maschine at Work GmbH 

A scalable pricing to support market launch and strategic positioning as a SaaS solution provider.

Customers' Starting Position

  • Offering: Cloud service specifically designed for hosting of CAD, PDM, and BIM software (e.g. Autodesk AutoCAD).
  • Lifecyle phase: 4 month before launch.
  • Current pricing model: 3 bundles differentiated by users and storage and 3 features.
  • SaaS transition: Starting the transition from a software system house selling on-premise software to a SaaS solution provider.

Objectives

  • Gain an overview of SaaS pricing and the SaaS business model and get expert guidance for transitioning to a SaaS solution provider.
  • Develop an pricing model tailored to appeal to a wide range of customer segments.
  • Facilitate easy migration of existing customers.
  • Implement strategies to capture a fait share of the value delivered to the customers.
  • Maintain flexibility for negotiations and future solution development.

Pricing Journey

  • Team Formation: Defined a pricing leader and set up a pricing team with products owner, sales and IT representative.
  • Onboarding & Assessment: Conducted an 1-hour onboarding session and a pricing assessment using a 10-minute questionnaire.
  • Education & Exploration: Run an high-level pricing workshop for the buy-in of the top-management representatives.
  • Design: Developed a pricing model in a series of an Pricing Model Initial Design and Pricing Model Refinement Packages with
    • a value proposition of more than 100 elements (products, services, features) and a concise description of the value proposition and the customers‘ value,
    • a price structure of 4 bundles differentiated by products, services and features and 4 price metrics which cover different customer segments,#
    • a set of price points based on the value delivered, costs and top down targets, and
    • various psychological price levers (e.g. up- and cross selling, anchor pricing) to increase the willingness to pay further.
  • Validation: Run an additional Pricing Team Coaching in which we elaborated the validation interviews the migration of existing customers.

Outcome

  • Customer-Centric Pricing: A new SaaS pricing model which covers a wide range of customer segments, describes the solution concise and captures a fair share of the value delivered.
  • Framework: Alignment of internal stakeholders and buy-in from top-management representatives.
  • Know-how Transfer: A continuous and in-depth transfer of know-how on SaaS pricing and the SaaS business model.
  • Rapid Execution Fast and effective results within a time period of 8 weeks and 8 days of direct collaboration