Start High B2B Pricing

A framework for B2B pricing strategy based on CB Insights' experience and lessons learned in enterprise sales.

Core Pricing Philosophy

• Start with high prices ($20-50k) for enterprise/C-suite customers
• Easier to decrease prices later than to increase them
• Price signals quality and credibility to enterprise buyers

Lessons From Low Pricing Mistakes

• CB Insights initially priced at $395/month
• Low pricing attracted problematic customers:
  • Didn't know how to use data effectively
  • High support needs
  • Quick to churn
  • Low revenue per customer

Enterprise Buyer Psychology

• Low prices can appear suspicious to large companies
• Management consulting feedback: "Add zeros to price"
  • Low prices look like a joke internally
  • Enterprise customers don't want to wait behind low-paying customers
• Price serves as an indicator of:
  • Product quality
  • Service level
  • Company credibility

Pricing Strategy Evolution

• Started at $395/month
• Now "orders of magnitude higher"
• Focus on enterprise-level pricing
• Target customers who:
  • Understand data
  • Have bigger budgets
  • Need less support
  • Stay longer

Key Takeaway

• Don't underprice B2B products
• Price based on value and target customer profile
• Consider how pricing affects perception
• Focus on quality customers over quantity