A Simple chart that can explain why Pricing plays a crucial role as your company starts to scale.

1. Pricing is a critical strategic level that can be used to maximize your revenues.

2. For SaaS companies, where one has to keep balancing the cost of acquisition (CAC) constantly and the LTV (Lifetime Total Value) of a customer, pricing can play a huge role in increasing the LTV

3. At the bare minimum, SaaS companies should at least revisit their pricing strategy every 6 months

As product leaders, if you are facing challenges where your top-line growth is stagnating or the LTV/CAC ratio is starting to decline, it might be a good time to check when was the last price correction done !!!