Episode 646 | Building a Recurring, Annual Price Increase Into Your SaaS

Startups For the Rest of Us

Rob Walling

Management, Entrepreneurship, Business, Marketing

4.8 • 792 Ratings

🗓️ 31 January 2023

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In episode 646, Rob Walling catches up with James Kennedy, the founder of ProcurementExpress, about James’s unconventional approach to price increases. Every year, James does an annual price increase across the board. He talks about how he communicates it to both leads and customers, the pros and cons of this approach, and why it is been a net positive for the business. Topics we cover: 2:03 - About ProcurementExpress 4:41 - How big is the ProcurementExpress team? 7:43 - Why did James change the company name? 9:48 - What led James to settle on an 8% annual price increase for all customers 15:02 - Communicating the annual price increase to new customers 17:01- How James uses these annual price increases to close more deals 17:36 - When you shouldn’t do annual price increases 23:04 - SaaS buying patterns that James sees 24:00 - The best subject line that James has ever written Links from the Show: James Kennedy (@JamesKennedy) I Twitter ProcurementExpress TinySeed Designing the Ideal Bootstrapped Business with Jason Cohen How to Stop Giving Demos & Build a Sales Factory Instead – James Kennedy – MicroConf Growth 2017 How We Reduced Churn by 25% and How You Could Do It Too – James Kennedy – MicroConf Europe 2019 If you have questions about starting or scaling a software business that you’d like for us to cover, please submit your question for an upcoming episode. We’d love to hear from you. Subscribe & Review: iTunes | Spotify | Stitcher

Transcript

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0:00.0	Welcome back to startups for the rest of us. I'm your host Rob Walling. This week, I'd sit down with James Kennedy,
0:05.6	and we talk through this interesting approach he takes with his business, Procurement Express, where they have a recurring annual price increase every year.
0:14.6	And they're very upfront about this. They communicate this to the clients when they sign up.
0:18.8	We run through the pros and cons of this strategy, as well as
0:22.2	catch up with James Kennedy. He has spoken at several microcomfs. You may have seen him if you've
0:27.5	attended. But before we dive into that, tiny seed applications for our next batch are open from
0:33.1	February 6th to February 19th. If you're a bootstrapped SaaS founder doing at least $500
0:40.2	in monthly recurring revenue up into the many tens of thousands in MRR, I'd love it if you would
0:47.0	apply. Head to tinyseed.com slash apply to find out more. You can drop your email there to get
0:53.3	notified when applications open
0:54.8	or just head to tiny c.com slash apply. If you are interested in participating in a year-long
1:00.8	accelerator program that is focused on bootstrap and mostly bootstrap SaaS founders like yourself,
1:06.8	we offer mentorship, guidance, the batch itself. We have an amazing Slack channel.
1:12.6	And we offer community.
1:14.0	And we match you with masterminds within your cohort of founders,
1:18.0	as well as the right amount of funding for a company like yours.
1:22.2	TinyC.com if you're interested.
1:24.2	And with that, let's dive into my conversation with James.
1:26.8	Thank you. interested. And with that, let's dive into my conversation with James.
1:41.2	James Kennedy, welcome to the show. Hi, Rob. How are you? I'm doing good. People might recognize your name and voice from the many questions you've sent
1:44.6	in. Voicemail questions. You tried the, we call it video ask, I guess, that's at the top of the
1:50.5	website. I feel like I feel like I'm the biggest sponsor of that thing. I feel like, this is an
	...

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