Pricing that matched the product

How a founder-led software company halved its average discount without losing a renewal.

Industry

Logistics software

Owner

Founder-led

Service

Value creation plan

Length

6 weeks

A team discusses a process diagram on a whiteboard in a brick-walled office.

The question

Halvard sells dispatch and tracking software to regional trucking companies, with about $40 million in recurring revenue. Its founders were about to launch a route-planning module and asked a narrow question: what should it cost? Within a week it was clear the real question was how Halvard priced everything.

What we found

There was a price list, but almost nobody paid it. The average discount was 14%, and it followed no pattern we could find: the deepest discounts went to some of the most loyal customers, mostly because they’d negotiated hardest at renewal.

Meanwhile, usage data showed that fleets with more than 200 trucks used about four times as many features as small fleets, at roughly the same price per truck. The sales team was pricing every deal from scratch, and the new module was about to become one more thing to discount.

The one page

The page recommended three plans by fleet size, with clear limits and the routing module included in the top two, plus one discount rule the sales team could actually follow. Existing customers kept their current price for one renewal cycle, so nobody faced a surprise mid-contract.

Halvard pricing memo: sell three plans by fleet size, with the routing module in the top two.

What happened

The plans went live with the module in the first quarter. Twelve months later, the average discount was 7%, net revenue retention had risen from 104% to 112%, and no customer had left over price. The sales team spent less time negotiating and closed new deals about two weeks faster.

Discount measured across all new and renewing contracts in the 12 months after launch.

Have a decision on the table?

Forty-five minutes with a partner, at no charge. Within two days we’ll tell you whether we’re the right firm, and if we’re not, who is.

Have a decision on the table?

Forty-five minutes with a partner, at no charge. Within two days we’ll tell you whether we’re the right firm, and if we’re not, who is.

Have a decision on the table?

Forty-five minutes with a partner, at no charge. Within two days we’ll tell you whether we’re the right firm, and if we’re not, who is.

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