Applicable to the following Sastrify plans:

Legacy*EssentialsProPlatinum
**

* Legacy includes all plans signed prior to November 1, 2023 and labelled as "Starter", "Advanced", "Professional" or "Enterprise".

** The feature is available as an add-on.


Introducing "Pricing Benchmarks": The fastest way to prepare for negotiations and know if you are paying a fair price for your current volume.


IN THIS ARTICLE


Please note that this feature is currently in Beta version. 

Sastrify is actively refining this feature for its official release, which will encompass an expanded tool list and provide more precise outputs. We appreciate your patience in the event of any issues encountered with the beta version of this feature. 

If you wish to participate in beta testing of the feature, please complete the Beta Access application form!

What is "Pricing Benchmarks"?

Pricing Benchmarks is a built-in feature within Sastrify platform that instantly provides data-backed pricing benchmarks so you’re better equipped for upcoming negotiations - be it a new purchase or a renewal.

 

Through the Sastrify platform, customers can input various parameters, such as:

  • The SaaS tool in question

  • Number of licenses

  • Current pricing

  • Payment terms & more


From there, we’ll compare your price point against our extensive datasets. Based on this comparison, we deliver an accurate, real-time benchmark that enables you to understand precisely where your pricing stands in the market.


With this information at hand, our customers will be able to check if it’s worth asking for a discount and what the potential savings that can be achieved. As more contracts are managed through Sastrify, this feature continually refines its accuracy and expands its applicability across an even broader array of SaaS tools.


How to use Pricing Benchmarks

Price Benchmarks can be accessed from Optimization > Price Benchmarks.




To use this feature:

  1. Start by clicking on the "New Benchmark" button
  2. A new benchmark page will open, guiding you through a simple two-step process from specifying the requirements (inputs) to obtaining the benchmark results (outputs). 
  3. Fill in the details of your current contract or offer, which consists of: tool (or vendor) name, product (or SKU), plan/tier, volume (total number of licenses purchased), currency, and price per license per year.
  4. The application will automatically calculate the full volume of the contract based on the data you enter as a sanity check.
  5. Confirm that the calculation is correct before proceeding.
  6. Click "Run Benchmark".

Definitions on terminologies:

Plan/Tier: The Subscription plans or tiers (otherwise also called SKUs) of a tool are typically referred to as "Subscription Plans". These represent the different packages or levels of service that customers can choose from when buying the tool.

Volume: Depending on the tool your are benchmarking, volume can be “users”, “GB”, or “events”, etc. Different SaaS tools sometimes define their volumes differently. 




As the outputs, you will be presented with the following data that represents the benchmarks for your contract or offer:

  • Benchmark Details: contains the previously submitted information about the contract or offer.
  • Price Chart (per license per year): shows the comparison of your current pricing with the highest, lowest and median price per license per year of the comparable contracts.
  • Database Information: Provides information about the amount of comparable data we use as benchmarks, as well as the confidence level of the data based on the amount of data points available for comparison in your specific volume range.
  • Your statistics: provides a more detailed visualization of multiple numbers showing the price chart (located on its left side) as well as the difference between your pricing and the highest, lowest, and median price for that tool.


Disclaimer: The benchmarks provided by Sastrify are based on a specific sample size of historical price points. A price benchmark can be a powerful tool to shift bargaining power in your favour, but success is not guaranteed. Furthermore, the benchmark does not necessarily represent the maximum possible discount and should always be challenged. Achieving best-in-class prices depends on factors such as timing, contract setup and negotiation approach

Frequently Asked Questions


Q: the contract or offer of my subscription has several line items (or multiple products or services), how should I proceed with the Price Benchmarks app?


A: For a case such as this, you need to perform the benchmark exercise inidividually for each of the product or service.


Q: I cannot find a particular tool that I originally wanted to benchmark. Will the list be expanded?


A: Yes, of course! With the current app, there are already quite a few tools or SaaS vendors to benchmark. But we won't stop there. Sastrify will continue to work towards significantly increasing this number in a progressive manner.


Q: How does Sastrify collect the datasets for the Price Benchmarks?


A: Sastrify collects benchmarks from a number of trusted and legitimate sources, including: our first-hand experience from vendor negotiations that Sastrify supports as lead negotiator, conducting extensive market research, as well as price comparison analysis and data aggregation from multiple, reputable industry sources, and scanning vendor pricing websites to identify special offers or price increases. A benchmark provided by Sastrify represents a combination of the above sources. Please read this article to learn more.