Why free was too generous and how we solved it | Miguel Dergal (Canva, PayPal, Bill.com)

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting. From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.

Today’s guest is Jose Miguel Dergal, who is Head of Product Growth at Canva. Miguel has worked at PayPal, Bill.com, Chime, and Invoice2go.

Miguel discusses his time at Invoice2go, and how he discovered problems with the pricing and features.

(4:33) He wanted to move to the ‘Good, Better, Best’ model. Miguel and Marcos how you can discover if you are giving too much or “too much in the free.”

(10:16) The two major parts to realizing this is:

1. Is it fair for this to be a premium feature?
2. Are people upgrading to another plan?

Miguel tells Marcos about a twist that happened in the pricing model. (14:52) From this surprising twist they created their ‘Pro Plan’ and ‘Unlimited Plan.’

He talks about the recent pricing challenges at Canva. (23:41) They realized they were giving a lot more away for the free version of Canva to get people on board. They wanted to better serve different team sizes in their pricing and have some new and exciting things to come!

Miguel talks about his hopes for the future, specifically usage-based pricing evolving more. (27:21)

Marcos and Miguel close out the show by discussing Miguel’s favorite song today is “Dance Monkey.”

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