In a recent video titled "Launch Your New Pricing Function at a Tenth of Market Cost!" published on May 28th by Monetizely's YouTube channel, the company announced the industry's first managed pricing as a service offering for software and services businesses. This groundbreaking service aims to help SaaS companies optimize their pricing strategies without the prohibitive costs of building an in-house pricing function.
The Hidden Power of Pricing in SaaS Growth
Most SaaS founders and executives treat pricing as an afterthought. It's often considered a "dark art" - mysterious, complex, and requiring specialized skills that many product teams simply don't possess. However, this oversight could be costing your business millions in potential revenue.
As explained in the video: "Pricing is considered a dark art. Pricing is not very easily understood and it feels for founders, it feels for executive teams that it's going to take a lot of work to keep continuously iterating pricing."
But what's the real impact of this neglect? According to research cited in the presentation, while top-performing SaaS companies reach $10 million ARR in about 3 years, median companies take around 5 years to hit the same milestone. Now imagine the impact of implementing better pricing strategies.
The Compelling Math Behind Optimized Pricing
The video presented a powerful mathematical case for investing in pricing optimization:
"What would be the compounded effect of a 12% increase in ARR year for the median companies? The effect would be that by the time the same company got to 10 million ARR with this 12% compounded they would get to 25 million ARR in the same time."
This compelling example illustrates the power of compound growth. Even leaving just 10% of money on the table each year through suboptimal pricing can dramatically slow your growth trajectory. Over time, these seemingly small pricing inefficiencies compound into significant lost revenue opportunities.
Why Don't More Companies Have Pricing Functions?
The answer is simple: cost and expertise.
"If you hire a director of pricing that could be anywhere from 200 to 300K. An analyst would be about 100 to 200K. Then there's research budget. So all in this could net you around 4-500K just to start."
Building an in-house pricing function requires significant investment - not just in personnel but also in research, tools, and ongoing management. For many growing SaaS companies, especially those below $100 million ARR, this level of investment is difficult to justify, despite the clear benefits of optimized pricing.
Monetizely's Managed Pricing as a Service Solution
This is where Monetizely's new offering comes in. The company has developed a managed pricing service that delivers the benefits of a full pricing function at a fraction of the cost - "about a fifth to a tenth" of the traditional approach.
How can they deliver this value? According to the presentation:
"We are the only services company that has a product roadmap. Thanks to AI, we've been building a slew of solutions that help us do this at speed and at scale. Alignment, package design, pricing metric selection, and surveying customers and even doing in-person research."
The service leverages AI-powered tools that automate much of the analytical work, allowing companies to focus on implementation. This means faster insights, quicker time to value, and less internal resource drain.
What Does the Managed Pricing Service Include?
Monetizely's offering is comprehensive, essentially functioning as your outsourced pricing department:
"We will be your pricing person. We will do data analysis. We will tell you where the opportunities are. We will work with your product management team to launch new features. We will overhaul pricing. We will take the CEO's imperative and translate that into pricing strategy."
The service includes:
- Dedicated pricing manager for your company
- Data analysis to identify revenue opportunities
- Hypothesis testing and market validation
- Implementation support and sales team training
- Pricing governance
- Deal desk capabilities if needed
Each client gets a dedicated pricing manager backed by Monetizely's AI-powered tools and methodologies, enabling them to deliver high-quality pricing strategies efficiently.
Getting Started with a Free Pricing Audit
To demonstrate the value of their service, Monetizely is offering a free pricing audit that includes either:
- An alignment assessment to evaluate how your team thinks about pricing
- A quick data analysis using your existing CRM data to identify immediate opportunities
As stated in the video: "That will give you a sense of our credibility and how fast we can deliver this for you."
Why This Matters for Growing SaaS Companies
For SaaS companies, especially those in the growth stage below $100 million ARR, pricing optimization represents one of the highest-leverage activities for accelerating growth. Unlike many other growth initiatives that require significant product changes or major increases in marketing or sales spending, pricing improvements can deliver substantial returns with relatively modest investments.
The compounding effect of even small pricing improvements makes this an area that no SaaS executive should ignore. With Monetizely's new service, the traditional barriers to having sophisticated pricing capabilities - cost, expertise, and tooling - are significantly reduced.
As the video emphasizes, "the implementation and then tweaking pricing is really where the gold is. That is where you get the compounded benefit."
For more information about this managed pricing service, visit www.getmonetizely.com or check the links provided in the video description for a free pricing assessment.