Most SaaS companies treat gross margin like a quarterly report card. The smart ones treat it like a flow system where every bad decision upstream screws your margin downstream.
The difference? Fit. When you chase the wrong customers, pretend to be everything to everyone, or price out of fear instead of value, your margin bleeds. When you nail customer fit, simplify ruthlessly, and price what you’re actually worth, your margin compounds.
This isn’t about cost-cutting. Everyone can fire people to hit profitability. The remarkable companies get there by making every part of their business—from who they target to how they price—strengthen their margin instead of compromise it.
To help you on your way, here are 10 actionable strategies to align customer fit, simplify operations, and strengthen pricing power for sustainable growth:
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