The Difficulty Ratio is a good read, by David Sacks, on sales, pricing and sales cycles. The idea is that in order for sales at a particular level of pricing to work, it cannot take too long to close a deal.
Combining Sacks’ pricing vs time to close and Mosaic Ventures pricing vs viable GTM approach give a useful framework for thinking about B2B sales.
(Source: The Difficulty Ratio)
The article has some practical tips on how to fix the situation if you are pricing too cheap to your sales velocity (or selling too slow to your pricing), including pricing, features, targeting new customer segments and making your sales more efficient.
Love the short nature of the articles Henrik!
Thank you Henrik! I’m building a small SaaS and validating with first set of customers now. Am thinking about marketing, sales and pricing model if everything goes well… 🙂
Remember seeing this blog post a while ago and had to dig it up.
Thank you Martin! I hope things are going well!