How To Price For B2B | Startup School

Y Combinator
Y Combinator
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Published 2024-07-25
If you're a startup founder, how much should you charge for your product or service? It's a simple question that can make many lock up. What number should you pick? In this episode of Startup School, YC Group Partner Tom Blomfield guides you on how to come up with a price and then justify that number to customers.

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Chapters (Powered by bit.ly/chapterme-yc) -
00:00 - Intro
01:19 - The Value Equation
04:28 - Cost
06:26 - Competition
10:08 - Pricing
13:42 - Free trials
16:42 - Recap
17:30 - Outro
All Comments (17)
  • @chapterme
    Chapters (Powered by ChapterMe) - 00:00 - Intro: B2B pricing tips for founders 01:19 - The Value equation for customer satisfaction 04:15 - Value equation and other elements in pricing 04:28 - Cost and margins in software pricing 05:57 - Investing in low-cost LLMs risks land grab 06:26 - Competiton: Value equation, pricing, differentiation 08:03 - Ask champion: How do you pay for software? 08:17 - Essential pricing tips for successful sales 10:08 - Publishing or contact sales for pricing decisions? 10:25 - Value-based pricing for enterprise customers 11:42 - Pricing strategy dictates sales channels 13:42 - Free trials or Pilots? 14:08 - Push customers to sign up for annual contracts, play strengths as startup 16:42 - B2B pricing summary recap: Value, cost, and differentiation strategies for successful pricing 17:30 - Outro
  • @moslanguagechannel1499
    Cool. Thank you for this video, Tom and YC! Looking forward to watching the B2C version soon!
  • @OldemiroAmericoBaloi
    This video came in the right moment, I was struggling with this because need to send a proposal for POC 🎉🎉🎉🎉
  • @mxpf26
    Awesome video! Helped me think different about the current enterprise pricing, I was way underpricing before.
  • @colbr6733
    Really useful, particularly to those of us who tend to be focused on the technology side.
  • @abdoulahadfaye
    Great video, quite useful and tailored advice. Quite what I needed atm.
  • @DisruptedSinner
    Great video. This is exactly what I needed right now. In the video, it gets a bit confusing sometimes when you're on a roll and just throwing out numbers without specifying if they're meant to be MRR or ARR. Other than that, this information will be extremely helpful in the months to come.
  • @hsng1
    Thank you for the B2B sales videos!
  • @Romanticoneable
    What about overpricing the software, say 5x and then ask the user how much can they actually pay for? What if the user does not pay for any software, or the ones they use are free and you are coming with a paid option that solves their issues?
  • @araragi2501
    If the value I bring is $50.000 per month and my competitors sell their service for $2.000, how do I decide the price?