Pricing is a challenge, but now more than ever, companies need to hit the market with optimized pricing to stay competitive. Many companies leave money on the table by not pricing thoughtfully, which can impact revenue.
With the right combination of long and short-term strategies, businesses can attract more loyal customers. Accrue helps technology companies increase profits by testing and optimizing pricing, product and service bundling, and monetization aspects.
The Nuts & Bolts
Problem: We’ve seen that pricing is typically one of the last decisions made for products or services of high growth startups. While there may be rigorous processes in place for shipping products, pricing seems to be more of an afterthought, and in some cases, a shot in the dark. Accrue is setting out to productize pricing science methodologies to help companies better optimize their pricing schemes.
Solution: Accrue uses a combination of established and novel pricing strategies and employs the latest AI and data science approaches to help companies reach their desired business outcomes by identifying key opportunities in areas, such as:
- Pricing structure/metrics
- Pricing levels
- Payment terms
- Contract lengths
When 500 Met Accrue
We met the Accrue team through open office hours. Ammanuel Selameab, the co-founder and CEO, has deep experience in pricing, spending the last eight years in this space. Prior to starting Accrue, Ammanuel was the Head of Pricing at Carta and has spent time working in pricing for Gap, Reinvate, and Cargill.
Studies found that half of seed-stage SaaS companies think about pricing at the last minute, as they’re getting ready to launch their product. Over 40% of these companies have never tested or piloted pricing, and a similar number have never performed market research to assess how much buyers would pay for their product or service.
Executives know this is a problem. A Bain survey found that 78% of respondents noted their pricing decisions could be improved, and they realize they are leaving money on the table on many aspects of pricing.
Accrue has adopted a data-driven approach to pricing automation to help companies scale faster. They typically begin an engagement with a Proof of Concept where they evaluate business goals and current pricing strategies, run preliminary tests, and provide a list of actionable recommendations for increasing revenue and profit.
Future of Accrue
Accrue is currently in private beta, so if you are interested in giving their product a test drive, sign up to join the waiting list today.
If you would like to learn more about companies, sectors, and trends that we are excited about as well as receive invitations to exclusive previews, and expert roundtables, please sign up here.
You can learn more about Accrue at: https://goaccrue.io.
Legal Disclaimers: 500 Startups programs (including accelerator programs), investor education services, strategic partnership consulting services and events are operated by 500 Startups Incubator, L.L.C. (together with its affiliates, “500 Startups”) and the funds advised by 500 Startups Management Company, L.L.C. do not participate in any revenue generated by these activities. Such programs and services are provided for educational and informational purposes only and under no circumstances should any content provided as part of any such programs, services or events be construed as investment, legal, tax or accounting advice by 500 startups or any of its affiliates.
The views expressed here are those of the individual 500 Startups personnel, or other individuals quoted and are not the views of 500 Startups or its affiliates. Certain information contained herein may have been obtained from third-party sources, including from portfolio companies of funds managed by 500 Startups. While taken from sources believed to be reliable, 500 Startups has not independently verified such information and makes no representations or warranties as to the accuracy of the information in this post or its appropriateness for a given situation. In addition, this content may include third-party advertisements or links; 500 Startups has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, tax or accounting advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation, offer to sell or solicitation to purchase any investment securities, or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by 500 Startups. (An offering to invest in an 500 Startups fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by 500 Startups, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results.
Charts and graphs provided herein are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Unless otherwise expressly stated, figures are based on internal estimates and have not been independently verified. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. All logos and trademarks of third parties referenced herein are the logos and trademarks of their respective owners and any inclusion of such trademarks or logos does not imply or constitute any approval, endorsement or sponsorship of 500 Startups by such owners.