Value Inspiration Blog

Stories and thoughts about inspiring new forms of value creation

Struggling to get your SaaS gross-margins to top 70%?

gross margins in saas

“Optimizing your costs and expenses is key to building a winning cloud company. In cloud, gross margins measure how effective companies are in delivering their software to customers, and they average 65-70% across company lifetimes.”
Now I completely agree with this – however, I’d like to address an area where I see a lot of SaaS companies negatively impact their margin: The quality of their revenue. […]

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Lowering your price….

The madness of Black Friday is just behind us – and now we’re entering the final month of the quarter – and for many, the last month of the Fiscal Year. It’s that month where – especially in B2B software – the pressure is on. It’s that month that could make or break the year. 
A couple of weeks ago, I wrote about this already: “Will they buy?” Honestly – looking at your own SaaS pipeline – how many of the prospects you managed at that point are still undecided – not showing any urgency to move? So the question remains: “Will they buy?” Will they?
As time runs out – so do our options to end the year with a bang. And that typically leads to one thing: Lowering our prices.  […]

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