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COMMON SENSE BUSINESS
Common sense is the least
common of the senses!
“It’s a winner takes all market”
“Once we finish building this feature”
“Our customers don’t actually want to talk to us”
“We can only acquire customers as low cost leaders”
“But I do talk to my customers”
“Increasing the price is impossible without
huge churn and Twitter meltdown”
“Distributed teams are a win-win”
“Our Engineers are the best of the best”
“There’s no point hiring salespeople”
“We need to spend aggressively to
hit our growth goals”
“That might work in other
companies, but we’re different”
“There is no way to cut costs
without destroying the business”
Principles
Price Strategy
Category Design
Installed Base Health
Centralized Teams
Success Based Investing
Customer Interviews
Go to Market Science > Product
Category Design
Product differentiation isn’t strategy. My best salesperson vs your best salesperson; you’ve
raised more VC dollars than me; I’m the cheapest; I’ve got the most features. HARD WORK!


Create a New Category - automatically be #1. You want to occupy a position in the
customer's mind, and only one company can be there.


It’s easier to sell a category than a product. Customers self-select.


The company is easier to run! At every level, decisions become more obvious fits or misfits.
Project Management and Code Repos “All-In-One-Place”


…. for Game Developers!


Goldilocks: More powerful than Trello, better UI than Jira.


#1 in SVN
Assembla
Enterprise Cloud Version Control
Price Strategy
Value Pricing: The mid-point between the value you deliver and the maximum the customer
could pay. Entrepreneurs typically don’t value price - they do cost or competitor.


Increase Prices: Most SaaS companies price too low. (And almost never increase prices!).


Don’t Grandfather Plans. It’s not a ‘standard practice’, it’s really over-charging new customers
to subsidize the existing base.


Evaluate all the Levers. As your business, customer, and product evolves - the dimensions of
value change too - regularly evaluate the levers pricing should be applied to.
Thank you!

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Ed Byrne - Common Sense Scaling

  • 2. Common sense is the least common of the senses!
  • 3.
  • 4. “It’s a winner takes all market” “Once we finish building this feature” “Our customers don’t actually want to talk to us” “We can only acquire customers as low cost leaders” “But I do talk to my customers” “Increasing the price is impossible without huge churn and Twitter meltdown” “Distributed teams are a win-win” “Our Engineers are the best of the best” “There’s no point hiring salespeople” “We need to spend aggressively to hit our growth goals” “That might work in other companies, but we’re different” “There is no way to cut costs without destroying the business”
  • 5. Principles Price Strategy Category Design Installed Base Health Centralized Teams Success Based Investing Customer Interviews Go to Market Science > Product
  • 7. Product differentiation isn’t strategy. My best salesperson vs your best salesperson; you’ve raised more VC dollars than me; I’m the cheapest; I’ve got the most features. HARD WORK! 
 Create a New Category - automatically be #1. You want to occupy a position in the customer's mind, and only one company can be there. 
 It’s easier to sell a category than a product. Customers self-select. 
 The company is easier to run! At every level, decisions become more obvious fits or misfits.
  • 8. Project Management and Code Repos “All-In-One-Place” 
 …. for Game Developers! 
 Goldilocks: More powerful than Trello, better UI than Jira. 
 #1 in SVN Assembla
  • 11. Value Pricing: The mid-point between the value you deliver and the maximum the customer could pay. Entrepreneurs typically don’t value price - they do cost or competitor. 
 Increase Prices: Most SaaS companies price too low. (And almost never increase prices!). 
 Don’t Grandfather Plans. It’s not a ‘standard practice’, it’s really over-charging new customers to subsidize the existing base. 
 Evaluate all the Levers. As your business, customer, and product evolves - the dimensions of value change too - regularly evaluate the levers pricing should be applied to.