Peter Preston’s Post

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Co-CEO at Accoil Analytics. Building the first (and best) product analytics for GTM teams.

Black Friday Walks Into a SaaS Meeting Black Friday sidles into the room, still wearing its "everything must go" neon badge. It looks SaaS up and down and smirks. "You can't handle me," it says. "I destroy margins. I train your customers to wait for discounts. I leave businesses with nothing but regrets and a little extra chaos. It's fun." SaaS leans back in its chair and smiles back, "Actually…I think we can work something out." Saas isn’t like selling TVs or blenders. The economics of recurring revenue are different. When gross margins hover around 80%, discounts don’t have to drain a business if the lifetime value checks out. Pulling forward a sale? That can hurt when a consumer would have bought at full price anyway. It might be a good thing when there’s monthly recurring revenue waiting on the other side, though. A one-time deal doesn’t always mean customers expect it to last forever. That's not Saas. Especially when they know the rules (price goes up, folks — plan accordingly). There are ways to play BFCM smart: discounts don’t have to mean slashing prices. Hold your value. Sweeten the pot with added features, extra support, or something so compelling the usual "price-sensitive headaches" don’t show up in your support queue.

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