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SaaS Pricing Optimization: The Discounting Challenge | Krzysztof Szyszkiewicz S5:E12

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Manage episode 509326303 series 3644325
Content provided by Mike J Midgley. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike J Midgley or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Send us a text

Today, we're tackling "The Discounting Challenge" with Krzysztof Szyszkiewicz, founder of Valueships and one of the world's leading SaaS pricing consultants.

This is Part 3 of our comprehensive series, and if you haven't watched

Part 1: The Value Challenge or
Part 2: The Price Setting Challenge
We highly recommend starting with htese earlier episodes as this series builds momentum across all three episodes.
This final installment focuses on the shocking reality of how much money companies are literally throwing away through discounting.

What makes this episode particularly eye-opening is Krzysztof's revelation of "unconscious discounting", where companies give away too much at the same price rather than explicit percentage discounts.
His data reveals that some clients have seen up to 40% of their margin leaking through suboptimal discounting practices, with one client losing almost $140K (MRR) in monthly recurring revenue through discount leakage alone.

We explore the brutal mathematics of discounting (a 15% discount requires 60% more sales just to break even), the counterintuitive correlation between discounting and churn, and the systematic approach to "sealing" discount leakage without destroying your customer base.

Here are the core areas we discuss in today's episode:

1. The Shocking Mathematics of Discounting: Why 15% = 60% More Sales

2. Unconscious Discounting: The Hidden Revenue Killer

3. The 40% Margin Leak: Real Data from Client Engagements

4. The Discounting-Churn Paradox: Why Discounts Increase Customer Loss

5. The Discount Sealing Process: How to Fix It Without Losing 30% of Customers

About This Series

This concludes our comprehensive three-part SaaS Pricing Optimization series with Krzysztof Szyszkiewicz. Each episode tackled a specific pricing challenge that's costing SaaS companies millions in lost revenue:
Part 1: The Value Challenge - Why companies hide their value and how to communicate profit effectively.

Part 2: The Price Setting Challenge - How to set prices based on willingness to pay rather than guesswork.

Part 3: The Discounting Challenge (This Episode) - Why discounting is killing margins and how to optimize realized prices.

The data shows most companies have at least 10% untapped revenue potential.
The question is: which challenge will you tackle first?
Don't let another month go by with unconscious discounting bleeding your MRR.The frameworks and methodologies shared across these three episodes provide a complete roadmap for transforming pricing from a painful, ad-hoc task into a systematic growth engine that compounds returns over time.

Support the show

Learn more at www.forceandfrictionpodcast.com

  continue reading

68 episodes

Artwork
iconShare
 
Manage episode 509326303 series 3644325
Content provided by Mike J Midgley. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Mike J Midgley or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Send us a text

Today, we're tackling "The Discounting Challenge" with Krzysztof Szyszkiewicz, founder of Valueships and one of the world's leading SaaS pricing consultants.

This is Part 3 of our comprehensive series, and if you haven't watched

Part 1: The Value Challenge or
Part 2: The Price Setting Challenge
We highly recommend starting with htese earlier episodes as this series builds momentum across all three episodes.
This final installment focuses on the shocking reality of how much money companies are literally throwing away through discounting.

What makes this episode particularly eye-opening is Krzysztof's revelation of "unconscious discounting", where companies give away too much at the same price rather than explicit percentage discounts.
His data reveals that some clients have seen up to 40% of their margin leaking through suboptimal discounting practices, with one client losing almost $140K (MRR) in monthly recurring revenue through discount leakage alone.

We explore the brutal mathematics of discounting (a 15% discount requires 60% more sales just to break even), the counterintuitive correlation between discounting and churn, and the systematic approach to "sealing" discount leakage without destroying your customer base.

Here are the core areas we discuss in today's episode:

1. The Shocking Mathematics of Discounting: Why 15% = 60% More Sales

2. Unconscious Discounting: The Hidden Revenue Killer

3. The 40% Margin Leak: Real Data from Client Engagements

4. The Discounting-Churn Paradox: Why Discounts Increase Customer Loss

5. The Discount Sealing Process: How to Fix It Without Losing 30% of Customers

About This Series

This concludes our comprehensive three-part SaaS Pricing Optimization series with Krzysztof Szyszkiewicz. Each episode tackled a specific pricing challenge that's costing SaaS companies millions in lost revenue:
Part 1: The Value Challenge - Why companies hide their value and how to communicate profit effectively.

Part 2: The Price Setting Challenge - How to set prices based on willingness to pay rather than guesswork.

Part 3: The Discounting Challenge (This Episode) - Why discounting is killing margins and how to optimize realized prices.

The data shows most companies have at least 10% untapped revenue potential.
The question is: which challenge will you tackle first?
Don't let another month go by with unconscious discounting bleeding your MRR.The frameworks and methodologies shared across these three episodes provide a complete roadmap for transforming pricing from a painful, ad-hoc task into a systematic growth engine that compounds returns over time.

Support the show

Learn more at www.forceandfrictionpodcast.com

  continue reading

68 episodes

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