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Yes, inflation can be boring. No, you can't ignore it even in the GTM teams. We discuss what problems inflation is creating - and what to do about it.
Mentions
- (00:00) - Introduction
- (01:20) - SaaS and GTM inflation
- (06:18) - Rising Costs and Business Adjustments
- (09:57) - Understanding Value Pricing in SaaS
- (11:00) - Check your T&Cs
- (13:50) - Using Price Increase Wisely
- (18:54) - Communicating Price Increases to Customers
- (25:11) - Case Study: Effective Price Increase Strategies
Mentions
***
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Creators & Guests
What is The Revenue Formula?
This podcast is about scaling tech startups.
Hosted by Toni Hohlbein & Mikkel Plaehn, together they look at the full funnel.
With a combined 20 years of experience in B2B SaaS and 3 exits, they discuss growing pains, challenges and opportunities they’ve faced. Whether you're working in RevOps, sales, operations, finance or marketing - if you care about revenue, you'll care about this podcast.
If there’s one thing they hate, it’s talk. We know, it’s a bit of an oxymoron. But execution and focus is the key - that’s why each episode is designed to give 1-2 very concrete takeaways.
[00:00:00] Toni: Hey everyone, this is Toni Holbein. You are listening to the Revenue Formula with Mikkel and Toni. In today's episode, we talk about why go to market inflation is making you less efficient and why raising prices is the only fix. Enjoy.
[00:00:21] Toni: Did you enjoy school actually?
[00:00:25] Mikkel: Parts of it. So I took an entrepreneurship course. Course outside of school. I enjoyed that, but, you know, not really any of it, to be honest. And it's funny, I talked with my best friend about it and he was like such a monumental waste of time. And then all of a sudden
[00:00:39] Toni: or the entrepreneurship thing? School,
[00:00:40] Mikkel: university blah.
[00:00:42] And then you sit and do by accident, some kind of analysis and you're like, yeah, this is actually pretty smart. How did we come up with this? It's like, school. That's where we learned that
[00:00:50] Toni: Like what?
[00:00:51] Mikkel: I don't know, SWOT. Or Porters 5 Forces. Or,
[00:00:54] I don't know. University. University.
[00:00:58] Toni: Anywho,
[00:00:59] Mikkel: Anywho.
[00:01:00] you can hear the level.
[00:01:01] We didn't go to Wharton here. You can hear that much. Or INSEAD. It's
[00:01:04] like,
[00:01:05] we went to like, we went to whoever was willing to take us,
[00:01:09] Toni: us.
[00:01:09] Yeah, exactly. But
[00:01:10] Mikkel: Exactly. But that also means we work harder, you know.
[00:01:13] We're motivated. We're motivated.
[00:01:15] Toni: Maybe,
[00:01:16] Mikkel: So the thing is,
[00:01:17] Toni: we're so
[00:01:18] Mikkel: yeah, the thing is, we, we're going to take it back to SaaS now.
[00:01:20] This is a long winded intro to get to something
[00:01:23] Toni: No, I think, you know, we've accumulated all of that knowledge. And you know, if you, if you don't do anything, you know, about that knowledge, you know, it will get less and less relevant and maybe you forget more and more.
[00:01:33] So you kind of need to keep at it. Just like,
[00:01:36] Mikkel: the cost of doing nothing.
[00:01:38] Toni: exactly.
[00:01:39] Mikkel: And you think it's going to be zero, but actually that's not the case.
[00:01:44] And I'm so proud of you for making a segway for the first
[00:01:47] time. It's Like,
[00:01:48] we should have like an applause thing
[00:01:49] Toni: know, I know, I
[00:01:50] Mikkel: To
[00:01:51] To celebrate. Mark the moment. This is a special it's like, I feel it's a little bit like our version of Cards Against Humanity. It's like you get a, you get a title for the show and then it's like somebody needs to come up with with an introduction.
[00:02:06] why if you've been watching the video version on Spotify or watching the podcast on YouTube, sometimes our drinks are kind of blurred out because they don't allow alcohol to be showed. So that's, that's like our game.
[00:02:17] Toni: I mean, obviously everyone knows exactly what we're going to talk about today. Um,
[00:02:22] Mikkel: Pricing because
[00:02:23] Toni: the introduction was just so perfect, but we actually don't want to talk about something kind of weird. Uh,
[00:02:30] Mikkel: not being talked about.
[00:02:31] Toni: Basically inflation in the go to market. And we don't, we don't talk about it in the sense of like, ooh, you know, all the salaries, you know, ballooned and that's inflation.
[00:02:41] No, we're actually talking about the actual economic, super boring inflation of, you know, but used to be 3%. Yeah. And has been in the last few years, I dunno, 8% or something like that. And I wanted to talk about it today because it's, it's right there in the realm of incremental improvement across your funnel.
[00:02:57] But no one is talking about this one thing that sits behind it
[00:03:00] Mikkel: So please don't stop listening. It is actually, it is actually going to be relevant for SaaS. If you're, you know, a revenue leader, go to market leader at a SaaS company, B2B now, you definitely want to listen to this. I think the trigger was, I saw a guy who runs an agency called Seer Interactive. His name is Will something and he basically said, is anyone else noticing this issue?
[00:03:22] I'm talking with a chief revenue officer. About paid search and the challenge is the cost of Google search has been rising every single year. The budget also rise a little bit, but not enough for them to grow. So they remain flat on the channel. And that is a massive issue. I saw a report last year. Just the cost per click on Google ads went up 9%.
[00:03:50] just just think about that for a second, 9%. And how much is the marketing budget increasing? If it's nine, probably that channel DC is going to be flat.
[00:03:59] Toni: flat. No, exactly. And, and this is really, you know, let's start not thinking about this as the 2.
[00:04:05] 1%, you know, inflation that we had over the last decade every year. This is a little bit more. And I think what, what I also want to put into perspective for folks is, And you might've noticed this in your groceries and whatever you do, depending on where you live, but yes, we're talking about two, 3%, you know, inflation per year and so forth, or usually it's measured against last quarter's you know, price index and stuff, but these things stack up.
[00:04:32] So yes, it has been, you know, last year, the year before I forgot, 8%. Yeah. And now it's down to three. It doesn't mean that we. You know, reduce the eight down to three. It's that, you know, we, we went to eight. And now the next step is only three. So if you look at this over the last three to four years you will probably look at something that is more in the realm of, because it also, guess what, compounds, you're looking at a realm of like 15 percent overall, you know, We should have researched that number a little bit better, but you catch my drift here, right?
[00:05:05] Kind of these things actually, you know, while we're saying like, Oh, we're back to normal inflation. It doesn't mean we're back to normal prices. Kind of that inflation that we have seen in the past, that is locked in. We cannot change that. The only way we would be able to change that if we had a deflation going on, which you don't want to have,
[00:05:21] Mikkel: you don't. Definitely don't
[00:05:21] Toni: you don't want to have
[00:05:22] Mikkel: It's Like,
[00:05:22] if you remember anything from school, deflation,
[00:05:26] no goody, no goody.
[00:05:27] Toni: not good. So basically it just has been going up and up and up. Right. And usually how this inflation thing kind of works out, it's like prices go up, wages go up, prices go up, wages go up, right? Kind of, that's kind of the, the, the way this whole thing kind of works out.
[00:05:41] But. At the same time, you know, we don't necessarily see the exact same thing happening in SaaS, at least not on your pricing, you know, page, so to speak. Right. So we want to kind of take this a little bit into consideration and kind of go into a couple of examples, but we have seen prices increase. That might've gotten a little bit lost, right?
[00:06:01] And everyone is talking about, oh, we need to improve our win rate and our conversion rate here. And blah, blah, blah. But at the end of the day, you know, because some of us are running a real business and at the end of the day, it needs to be paid for. And if the cost to kind of deliver this is going up, then you still have an issue.
[00:06:18] Mikkel: Yeah.
[00:06:18] And I think it's also, it's not just the cost. You got to realize that. Those channels and sources, they get more and more difficult every year.
[00:06:27] Again, if you do nothing, chances are how you're running, let's say, outbound with SDRs, if you're not changing the recipe, it's going to be less efficient. And we are in fact seeing challenges on outbound where SDRs are booking fewer meetings. So if they're booking fewer meetings on average, plus getting paid more, that's not a great recipe to have, right?
[00:06:47] And so what do we do
[00:06:49] Toni: do about it? Go a little bit, you know, for example, on the SDR side, right? You could say, Hey, they're being less efficient. Is that an inflationary thing? I'm not so sure, but what certainly is there,
[00:07:01] and and it has slowed.
[00:07:03] It has slowed in the last couple of years for sure, but basically costs. You know, salaries have been going up, right? Salaries exploded in 21, 22, like to crazy levels. And some of that is coming down again. But we actually recently saw a really nice chart, really interesting chart, I'd rather say from Canva on salary increases.
[00:07:25] What was it, CARTA? CARTA, sorry, CARTA. On salary increases. And without inflation, I think sales and product and engineering were the only ones going up. Operations, marketing, HR, all of these, you know, all of the, the other ones basically going down without inflation. And then after inflation, all of them went down.
[00:07:47] All of them were underwater basically. And you know, even to the extent, I think the, the worst one probably operations. It was like minus 15 percent basically kind of year over year in like salaries. Right. So, what has happened a little bit on the sales side and sales was kind of close to the top, actually what's happened on the sales side is that yes, prices still went up a little bit but adjusted for inflation kind of came down you know, ultimately, which is important for the individual working in that role, right?
[00:08:14] Because yes, he or she got a little bit more money. but can buy fewer goods from that. But that still doesn't talk about you as a business, you know, because you still need to pay that person more. The question is, did you actually then get, you know, more goods in terms of more revenue from, you know, from what you did there?
[00:08:32] And the answer is probably no. The answer is very, very likely no. Right. And, and, you know, I can still see myself in 2018, 2019, Like, yes, we had those cute clauses somewhere that you can, you know, based on the CPI index increase and whatever can change prices. And we were always laughing about this. Who needs this?
[00:08:53] Come on, one or 2%. Come on, let's not be, let's not be those guys. You know what? We, we got to be those guys
[00:09:01] Mikkel: Yeah.
[00:09:02] Toni: Things have changed. We've got to be those guys now. And basically kind of trying to drive this awareness with, with the folks listening in
[00:09:09] Mikkel: Yeah. I mean, it's super common in every place almost but SaaS that you look because you have physical goods you need to buy in order to produce something.
[00:09:18] Then it's natural when those costs go up, you need to protect your margins. And if you transfer that to SaaS, that your costs are increasing because of inflation. Have you actually increased the price then at all, and adjusted that, that becomes a question? No, it's, it's,
[00:09:35] Toni: You know, to a degree, it's a little bit harder for the SaaS folks because yeah, you don't have the, oh, you know, I'm, I'm manufacturing this chair and if I sell it for you, you know, for this money you know, I lose money.
[00:09:47] So I'm not going to do that. You know, in SaaS, you don't have that,
[00:09:50] Mikkel: No. It's like you lose this amount of money or you lose that amount of money.
[00:09:53] Toni: And it's, it's really about cost plus pricing versus value pricing. Right.
[00:09:57] And in SaaS you have the value pricing piece where you specifically, you know, Don't want to sell at cost because your costs are like, you know, whatever.
[00:10:06] So you have this value thing and then it feels kind of awkward to push a really strong conversation around, well, you know, inflation and so forth. And that's why we need to increase prices, right? It kind of feels very awkward to do that. But what we're trying to say, and we're going to give you a couple of examples how we've dealt with this in the past, actually, but we're trying to say is you, you kind of have to find a way to do it because it's, it's also not fair.
[00:10:27] To just say, okay, yes, we've seen that increase happening in the last couple of years, the increase is continuing to, to evolve. And we'll just try and, you know, work our way out of this with extremely hard and risky improvements across the funnel. Like, Oh, let's squeeze that conversion rate. Let's get, I don't know, whatever else up in order to make up for that stuff.
[00:10:47] You can, but you're kind of fighting an uphill battle here. Right. And I think there's a, there's a simpler way of addressing some of these things and want to go, go through that today.
[00:10:56] Mikkel: today. Yeah, so where do we start?
[00:10:58] What's the first step to take?
[00:11:00] Toni: So the first step to take is check your T's and C's, check your legal documents. Do you actually have a clause in there that allows you to make price adjustments for whatever reason? It can be that, you know, I know in some European contracts it's literally tied to the consumer price index.
[00:11:21] There are a couple of other, you know, reference points. And basically it's saying, Hey, it's tied to the, to the CPI, but cannot be more than X, cannot be more than five or three or whatever. In some contracts, it basically just says like, you know, you have the right to exercise a price increase of three to 4 percent each year without even, you know, making a big deal of, without notifying people and stuff.
[00:11:45] Right. So check that you have that. If you have that in there, I think you're a really nice step ahead. If you do not have it in there. Definitely, you know, start thinking about including this into your T's and C's, at least for the deals going forward. Worst case, worst case, this is a great way to use it as a bargaining chip,
[00:12:04] Mikkel: Yeah.
[00:12:05] Toni: right?
[00:12:05] You know, when this comes out, when this comes up in legal and they want to get rid of it because they know how this thing works then, you know, at least you can use this, okay, you want to get rid of this thing. Well, then therefore I get this other piece over here, right? Kind of use it in order to move some chips around on the table.
[00:12:20] So number one, you need to have a contractual ability to do it. And we're really not talking about overall pricing changes. We're not talking about the Kyle Poyar and all of these other folks that we had on the channel that talk about how wonderful, you know, if you execute this new pricing structure and tiers and features and all of that, we're not talking about that stuff.
[00:12:43] We're talking about a very dumb way of increasing prices overall, right? Any, any, any thoughts, questions,
[00:12:50] Mikkel: No, I'm also, I'm also thinking, I like the, that it enters the negotiation realm. I was immediately thinking, Oh, you could also go for the annual, if it makes sense for you. In some cases it might make sense. You might also reflect over what does it do to the annual contracts themselves.
[00:13:04] But, but I think it also means. You're being very upfront with the deals you're bringing through. They know kind of what to expect, given that they actually read the contract,
[00:13:12] Right?
[00:13:13] So I kind of like that, and you can always refer back to it when you refer to the prices. If there are some kind of objections once you execute it, say, well, it was in the contract.
[00:13:22] Did you read it? Not that you have to be an asshole about it, but I think that You know, it makes it a bit more fair, which sometimes these price increases, you know what, I think the fairness kind of gets
[00:13:34] Toni: It's usually always about fairness in the end, actually, and about can you actually stand behind that.
[00:13:39] And those clauses are usually kind of written in a way where the fairness is justified by the inflation. Like that's actually, that's kind of already there. So you have a little bit of kind of leeway there.
[00:13:50] I think number two is use it wisely and carefully. So I've been working in a company where we skipped using it for one or two years and then we used it the third year and so forth.
[00:14:02] You, you can, you don't have to, by the way, but it's really about you know, not, not, not definitely not overusing it.
[00:14:10] Mikkel: Yeah. But, and I think it's also important because at some point, if you don't do it for, let's say, four or five years. You have a lot of catch up to do and which means you need to raise the prices by potentially quite a bit which is Difficult.
[00:14:22] Toni: yeah. But so that's what I'm saying. You need to use it wisely. And yes, while you can pinpoint it on inflation and, and, and those kinds of things there will always be a little bit of pushback and, and what you want to, what you want to really have is, Hey, and this is, by the way, this is how we rolled it out internally to the company.
[00:14:40] Basically my message was like, Hey folks we haven't done a price increase in the last four years. Do we internally believe that our platform is now, I think, three and a half percent better than four years ago? And everyone was like, yeah. Like, for sure. And, and mind you, we had a team of a hundred developers.
[00:15:02] Mikkel: Yeah.
[00:15:03] Toni: Oh, yeah.
[00:15:03] Mikkel: So probably. They weren't just fixing
[00:15:05] Toni: the platform was better. Let's just say it like this, right? And kind of once that was said out loud a lot of objections inside the organization actually kind of dropped away. Right? Because like, yeah, no, it's pretty straightforward. Yes. That's actually what it is. So you want to have this a little bit in the, in the in your back pocket to potentially you know, battle some pushback and, and our pushback was actually kind of in the first step was actually internal, kind of, there was a lot of feeling about, should we do it, how are we doing this and so forth.
[00:15:31] Right. So use it wisely also sometimes it ends up punishing your
[00:15:37] Your customer CDF for longer, a little bit more, right? Because maybe you have done this a couple of times in a row and maybe, you know, doing, doing a three to 4 percent increase. doesn't mean you now need to go to your pricing page and increase it by three or four percent.
[00:15:52] That does not mean that, by the way. You can, and you should, and you should kind of adjust it, but that's more the Kyle Poyar like, you know, approach to this thing. What we're talking about really kind of wouldn't even necessitate that. Kind of that can happen only with your customer base, right? And if you do it with customers in, you know, four, five, six, seven years, if you're lucky to have those customers, those three or four percent, if you execute them annually.
[00:16:15] They compound obviously, right? So you kind of, you need to be a little bit almost also talking about a case where you don't list pricing on a pricing page,
[00:16:21] No, so in our case we did actually, but so you need to just be a little bit careful, right? Because you're also changing prices and something, sometimes it's not comparable and someone is locked in and in a grandfather pricing scheme. And so it's, it's a bit messy, honestly. Right. But it's really if you have the right to execute it, you should think hard about how you can do it actually.
[00:16:41] Right. But that's why my point is like.
[00:16:43] use it wisely.
[00:16:44] Mikkel: But then would you go to every single customer and raise them 3 percent or would there be variants in the different cohorts?
[00:16:49] Because you mentioned grandfathering, you mentioned older clients.
[00:16:52] Toni: would go to every single customer and raise them 3%. Yes. So now, you know, some people will be like, Toni, I've like a, you know, my deals are a hundred thousand euros and going through procurement, I can't just send an invoice to 103, 000 euros.
[00:17:07] Right. So yes, I get that. Two considerations. I think this is a tactic that works better and easier when you have SMBs. Like smaller customers, maybe on a credit card, maybe on automatic payment or whatever it might be, right? Kind of, it works a little bit better. And this is where people need to kind of figure out on which side of the, in the gray zone do they want to be here, right?
[00:17:32] Because it is a little bit sneaky. It's a little bit sneaky but it is also justified by inflation that's happening in the market and it's justified legally because it's in your contract, right? So you need to kind of tread carefully, you know, how you want to execute this. But what my experience is if you have an SMB approach, you can basically and you have maybe annual or monthly or quarterly billing, You can basically feed it into the billing cycle immediately, right?
[00:17:59] Kind of, that's, that's extremely helpful for the organization because you can like, okay, now we're, we're sending out changed bills basically. And and then, you know, be prepared for the response, right? If you're more in the enterprise game you will have annual contracts. So you will have cohorts of different contracts where kind of this hits and you need to think a little bit, you know, number one, this can also be an upside.
[00:18:22] Because you can execute it with your Q1 cohort, get completely smacked in the face. And it's like, you know what? Actually, we're going to do it differently for Q2. You know, you don't, you're not playing with your whole customer base in one go. So it gives you an upside there. What is weird is. So, you know, we bought something for 22, 000 from you and now we have 22, 000 and something here, but what's going on.
[00:18:43] Right. So be a bit mindful, like kind of how you, how you execute this. And I think for SMB players, it's easier, but it doesn't mean it's impossible for enterprise
[00:18:53] Mikkel: enterprise players. Yeah.
[00:18:54] I think there's also the I guess the next step, which is also the communication.
[00:18:57] How do you actually announce this to, to folks? And I've seen a couple of great examples where You kind of have this, hey, do you think the product has gotten better? You can use that also to your advantage. And if you need to actually go and communicate it out to say, hey, we, we shipped all these cool things and we want to build these things next.
[00:19:17] That's why we're actually raising the prices because we believe there's more value in the platform.
[00:19:21] Toni: Yeah. So the comms bit was really the most difficult piece to get right,
[00:19:28] Mikkel: Yeah.
[00:19:28] Toni: to be honest. Yeah. So internally we, we had the legal stuff in place. We actually didn't use it for a couple of years and then we did. We, so that's why we, you know, we felt we were using it wisely. We haven't, you know, we've increased, improved the product by a lot.
[00:19:43] And we had largely SMB folks as our customers, right? So a lot of easy tick marks to be done. The main thing was actually around the communication. And the tricky bit here is. If you make a bigger thing out of it, you will get more pushback.
[00:20:00] Mikkel: pushback.
[00:20:01] Toni: If you make a smaller thing out of it you might feel a little bit worse because it feels a little bit like, like a screw over, right?
[00:20:07] And that was basically the conversation I had with the CEO there for probably a month back and forth, how we best want to do it.
[00:20:14] And it, it, so we ended up landing a little bit more sneaky than I, than I liked. But it ended up being the right call, right? So again, you know, use with care, be wise about it, don't piss people off.
[00:20:29] But certainly think about it. And, and basically kind of what we did in our case we basically added We added a note to the invoice itself, like, Hey, here's a 3 percent increase. And I think it was even a line item or something like that. We were kind of on the invoice itself. We were pretty clear and we explained on the invoice you know, why that is.
[00:20:49] We're referencing the paragraph and the T's and C's and saying like, Hey, it's a 4 percent increase. And we're also saying they're like, Hey, we haven't done that in the last years. Our platform has improved, blah, kind of,
[00:21:01] Mikkel: is improved. Yeah. So who,
[00:21:03] Toni: who, who actually checks an
[00:21:05] Mikkel: Yeah, yeah, yeah. They just look at the amount of
[00:21:08] Toni: so no one, no one, no one checks any invoices, right.
[00:21:10] Especially if it's on credit card or something like that, it's just kind of gets, you know, and also when you're dealing with different currencies, it's like, ah, maybe they charge me in euros and, you know, there, there can be all kinds of already funky numbers. So you didn't, you didn't really kind of.
[00:21:24] You know, think much about it. Yes, it was clearly written on the invoice and we kind of squared this away, but other, you could say it was a bit sneaky. What we did do in addition was that on the email that delivered the invoice, we said like, Hey, we, what did we say specifically? I think it's something like, Hey, we updated our pricing a little
[00:21:43] Mikkel: little bit.
[00:21:44] You
[00:21:44] Toni: know, we didn't say anything about it. But but we basically kind of introduced it like, Hey, we, we changed pricing. See invoice or see
[00:21:51] C
[00:21:52] attachment or something like this. So we, we didn't, you know, On the, on the flip side, we could have written an email to everyone saying like, Hey, we're doing this now.
[00:22:01] We could have, we could have had a pop up in the, in the product itself. Then we have so many other comms channels that we considered doing, and we ended up not doing that. Right? What we then also set up, because I think we were talking about like 1500 customers here where we kind of executed this, we basically set up a task force in the background that, you know, would immediately work through those issues if they came up.
[00:22:27] Mikkel: Yeah.
[00:22:28] Toni: And I believe, I believe we got like three.
[00:22:36] Mikkel: Yeah.
[00:22:37] Toni: responses
[00:22:38] Mikkel: Out of how many?
[00:22:40] Toni: out of the 1500,
[00:22:41] Mikkel: Yeah.
[00:22:41] Toni: like negative responses. And again, right. We ran around 15 million. So 3%, that's roughly half a million. That was, that was a great quarter for
[00:22:50] Mikkel: Yeah, yeah.
[00:22:50] Toni: Like adding that on top, right? And um, there, there was no negative backlash.
[00:22:56] It was, it was okay. We survived. It was fine. We didn't change the pricing on the website. If someone would have come and we had like a talk track, which I by now forgot, if someone would have come and said like, Hey, your pricing on the website is cheaper than what I'm paying. I don't know. We would have done something about that.
[00:23:12] But basically nothing happened. No one, no one actually cared, cared much, right? Because it also is at the end of the day, It's 3%. And it's legally justified. And you as a, you know, as a, as a user, you're looking at this and it's like, you know, we, it happened to us as well. Right. Some, some folks charged us back then, I think 7 percent more.
[00:23:32] And we're like, Hey, this is, I think it was, by the way, it was intercom, intercom, just like increased 7% and we were we were like, Hey, this is, you know, that's not cool. But we stuck with it. It was kind of, you know, it wasn't worth enough to go about and do something and so forth. 3 percent is like in this.
[00:23:51] Maybe if you notice, you are annoyed, but it wouldn't change your, your whole attitude towards the brand, to the product. You wouldn't go out and find something else. It's too small to, to bother
[00:24:03] Mikkel: But you know what, I think that's also what needs to inform the how much do we need to communicate it when it's a smaller change. Then you don't need to be as aggressive in your communication versus you're fundamentally changing pricing and packaging. And some folks are going to move from maybe having paid, I don't know, let's say 500 bucks per month for something.
[00:24:21] And now it's like going to be 800. That's a very fundamental shift, right? And people would, that would be outrage if that was the case. But a three, five, six percent increase is like, yeah, are we going to now spend time on revenue operations to rip out a tool, procure a new one, implement it, train people, set it up.
[00:24:40] And it's like, I've got better things to do. That's going to be the
[00:24:43] outcome as
[00:24:43] Toni: And, again, my people will go like, 3%.
[00:24:46] Okay. Well, number one, It's your entire customer base, so 3 percent is, is, is a lot pretty quickly. Think about you just having for a whole year, 3 percent more upsell than you had last year. Like that's, that's not insignificant.
[00:24:59] Mikkel: literally thinking, if you know you're going to go into, let's say raising.
[00:25:03] Toni: let's
[00:25:03] Mikkel: talks
[00:25:04] Toni: racing.
[00:25:04] Yeah. Yes. Then
[00:25:05] Mikkel: then maybe executing a pricing increase Q1 would be brilliant, you know?
[00:25:10] Toni: Yes.
[00:25:11] And we, so let's just kind of turn this around for a second here. Off script.
[00:25:15] Mikkel: yeah,
[00:25:16] Toni: doing a Trump here now. Are you guys okay if I go off, tell it to Trump? So we had, we had a uh, we still have that customer actually and they're fantastic.
[00:25:25] They're doing fantastic. Everything is fucking great. But they overused this price increase thing. They, I think, so they didn't wear that when referencing the three to 7%, they arguably set their prices to low, like for sure. They knew that the customer knew, everyone knew that but what they did two or three times a year, rise prices by like five to 10%, which, which looked great for the investors.
[00:25:47] They raised a bunch of money on the back of that, but you know, eventually it led to kind of a backlash. Right. So, and you want to be careful with that. If, if you are in this realm of really trying to achieve a step change. Go with the proper pricing and packaging update, you know, listen and read Kyle Poyar and, you know, all of that stuff and then need to roll it out and, you know, communicate proactively and, and, and all of that stuff.
[00:26:10] But that's not what we, again, that's not what we're talking about. We're talking about the inflation adjustment. And I think it's time now for all of us who are like, Oh, 2%, 1%, who
[00:26:19] Mikkel: cares? you
[00:26:20] Toni: You should care now. It's time to care now about this and to consistently execute
[00:26:24] Mikkel: it.
[00:26:25] You know what else is increasing other than inflation, by the
[00:26:27] Toni: the
[00:26:29] Mikkel: The amount screw you, the amount of followers, reviews, subscribes, likes, shares, downloads we hopefully are gonna get. I mean, we are getting more and more, I can see. But if you haven't already, we would definitely appreciate a review or a like wherever you are listening.
[00:26:45] Toni: each like now needs to be 3 percent more. It needs to be a like and 3 percent
[00:26:51] Mikkel: Can we just, I mean there must be some kind of contract with the listeners here, like
[00:26:56] Toni: Yeah, yeah,
[00:26:56] Mikkel: can call it a social
[00:26:57] Toni: we're, we're, legally enforcing
[00:26:58] Mikkel: Yeah. , you got noticed, . Yeah. That's it. Thanks
[00:27:04] Toni: Thanks Mikkel. Thanks everyone for listening. And you know, you're welcome for this wonderful introduction Mikkel. So there you go. Bye everyone. Bye.