value equation

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In the example, $2 million in potential savings supports a $700,000 contract price. 2:31 How To Price For B2B
The speaker typically recommends pricing at 25% to 50% of delivered value, roughly one-third. 2:55 How To Price For B2B

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In the example, $2 million in potential savings supports a $700,000 contract price.
“That's $2 million in potential cost savings”
2:31inHow To Price For B2B YouTube
as of Jul 2024metric
The speaker typically recommends pricing at 25% to 50% of delivered value, roughly one-third.
“I typically pick somewhere between 25% and 50% of the value you're delivering”
2:55inHow To Price For B2B YouTube

Talks 1

17:45

How To Price For B2B

Tom

Tom, a Y Combinator partner, explains how B2B startups can set prices by estimating the financial value they deliver with the customer, then charging roughly a third of that value. He recommends treating delivery costs as a pricing floor and avoiding price wars by differentiating the product. The talk also covers choosing familiar, simple pricing structures, balancing enterprise and self-serve plans, and matching sales channels to contract sizes. For early sales, he suggests short pilots with clear success measures, experimenting with prices, and focusing on closing the first customers.

Jul 25, 2024· 18 minDiscussed 1:20