Question

Have you renegotiated your pricing for any SaaS in light of COVID-19 and the shaky market?

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NBNite's avatar
a year ago

Yes - listed below in order of companies that were most proactive about helping out:

1) Gusto - as a small business, we received an email last week asking if it would help to differ payments by 3 months. We'd still have to pay the total at the end of the deferment, but holding on to cash in this environment is super important.

2) Zapier - They emails users to submit a survey to apply for their Small Business Assistance Program. For companies with < 10 employees and directly impacted by this crisis, you could apply (1 account per company) to get 3 free months of their Starter plan. Incredibly helpful and amazingly proactive!

3) Hubspot - Our contract was finishing up at the end of Q1 and we were able to get significantly discounted rates (normally available only for multi-year contracts) on a quarterly plan with a 30-day pay period.

Still waiting to hear back on a few others but for the most part, it seems like the larger saas providers have stepped up to help in some regard to help small businesses weather this storm.

8 points
NBNite's avatar
@NBNite (replying to @NBNite )
a year ago

Adding to this thread, if you use Quickbooks, they are offering 70% off for three months to current subscribers. Even if you're locked into an annual plan, you can switch from annual to monthly billing while on the phone with them and they'll apply the discount.

2 points
maguay's avatar
@maguay (replying to @NBNite )
a year ago

Oh nice, thanks for the update!

2 points
jcfuller's avatar
a year ago

Yes, we've done that. Especially one the slow-creep ones. Services like DataDog, Atlassian and others that let you easily just creep your costs up. But renegotiating things like DataDog also took engineering resources to cut certain things and change the way API calls were being made, etc. so it's no small feat. But it is a substantial savings (And right now that might mean another month of runway.) Most are looking very closely at churn metrics, and one tactic I would encourage, if it makes sense for you, is to ask for flexibility versus a change in terms -- for most of our applications, we know we'll still use them, but we might have headcount fluctuations. So we've had success in moving to true-up/down or flexible licensing with a renegotiation term in 12 months to give us room to flex hard in the short term, and work our way back in the long term. As always, YMMV.

4 points
osbennn's avatar
a year ago

I have not!

But I've been wondering about how long-term, loyal, paying users feel about all of the free access offers that SaaS companies are making. It's a great brand posturing move on the part of the software company, and it's a great acquisition opportunity, but what about the core user base?

Glad to see elsewhere on this thread that many are making sure to (even proactively, in some cases) extend these benefits to the older cohorts.

4 points
toby_brc's avatar
a year ago

Some services like Gitlab offered us 50% off for the month. Actually got one of our sales team trying to renegotiate everything - retention metrics are going to be so important to all companies in the next 12 months

3 points
AndrewJDavison's avatar
a year ago

Nope. But as a parallel, I had been thinking of using surplus cash in the bank to switch from monthly to yearly plans on the SaaS apps we know we'll keep using - but not I'm reluctant.

Would be a great time for SaaS apps to offer deeper discounts for people willing to lock in long term.

2 points
maguay's avatar
@maguay (replying to @AndrewJDavison )
a year ago

Some great tips in this discussion for picking annual plans to upgrade to: Do you prefer paying for software monthly or annually?

Could also be a good time to negotiate using the fact your team is considering going annual as an incentive for their sales teams.

2 points
AndrewJDavison's avatar
@AndrewJDavison (replying to @maguay )
a year ago

Very interesting - hadn't thought of having a % threshold when considering the jump.

We're pretty lean, so in most cases even the yearly plans would be mid 3 figure expenses. No room to negotiate really (or worth the time).

1 point
maguay's avatar
@maguay (replying to @AndrewJDavison )
a year ago

Makes sense, pretty much the same for our team right now.

Yeah, on percentages, the logic there holds most for larger purchases (4-5 figures I'd imagine) where you're tying up a significant amount of cash that could be user other ways. But if the alternative is getting whatever small interest you can in a bank account or taking a month or three off the price of a plan, the latter may be easier to justify.

2 points
AndrewJDavison's avatar
@AndrewJDavison (replying to @maguay )
a year ago

Yep. For me in life and in business, I get a certain satisfaction for saving money - even if it's just a few dollars here and there - through smart purchasing.

I feel like it's one of those behaviours that can have a cumulative affect in other areas.

Particularly with banks. I spent a good 30mins printing, filling and mailing a form to close down an unused bank account costing me £5/month. Some would say a waste of time... but you know, I really don't like giving money to people for no reason!

2 points
MrMikeWaters's avatar
a year ago

The only actions we're taking so far is to terminate any 'nice-to-have' SaaS and internalizing anything we can to save jobs while the future of the economy is uncertain

2 points
maguay's avatar
@maguay (replying to @MrMikeWaters )
a year ago

What products were only nice-to-have for your team?

1 point
MrMikeWaters's avatar
@MrMikeWaters (replying to @maguay )
a year ago

We're scaling back some IT automation, ticketing systems, ALM tools, paid analytics/BI, etc.

1 point
b_bradley's avatar
a year ago

We guarantee performance or you don't pay subscription fees. Performance is defined by a simulation that looks at historic results then forecasts a level of ROI that we guarantee will be achieved by +/- X% or they pay NOTHING for the software until they do. There is a little fine print such as a longer contract term and a risk premium.

1 point
maguay's avatar
@maguay (replying to @b_bradley )
a year ago

What software is offering those terms?

1 point
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