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“We wanted to go from a service-heavy model to a pure SaaS subscription for our software. Willingness to Pay designed a scalable packaging and pricing framework and helped us migrate our customer base to unlock recurring revenue.”

– Haukur Hannesson, CEO of AGR

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1. >50% average increase in ACV for existing customers
2. 50% average increase in ACV for new customers

About

AGR is a leading inventory optimization platform that delivers granular inventory visibility and data-driven forecasting across retail, wholesale, and manufacturing industries. With 20+ years of supply chain experience and a global team operating in 10 countries, AGR provides powerful, intuitive tools and expertise so companies can scale sustainably with intelligent inventory management. Learn how Willingness to Pay helped AGR increase ACV and unlock recurring revenue with a scalable pricing model.

Situation: An outdated on-prem model restricted ACV and scalable growth

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“We had just developed our SaaS platform. We needed a packaging and pricing structure that would enable us to sell to SMBs and larger customers while maximizing recurring revenue and ACV.”

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AGR was a key player in global inventory management, serving 300+ customers, including leading brand names like Nespresso, Regal, and Carrington. They wanted to shift their original on-prem model to SaaS and needed new packaging and pricing that would grow ACV and recurring revenue.

The old framework had supported growth and logo acquisition in AGR’s early stages. However, it was not designed to capture value across customers of all sizes, since it provided every customer with the full range of functionality. As a result, SMBs were charged too much for features they didn’t use, while growth and upsells to large businesses were limited.

This lack of scale in the pricing model restricted ACV and made it more difficult to sign customers with lower inventory volumes who needed a more cost-efficient offering.

The model also did not support long-term revenue growth since it did not monetize add-on features, hurting AGR’s unit economics. 

Unit economics were further impacted by the fact that sales teams often offered long-term discounts to close more deals.

Lastly, pricing was significantly outdated, which not only left money on the table but also made it harder to reprice legacy customers.

AGR needed to create a scalable packaging and pricing structure for their SaaS offering that would capture customer value, increase ACV, and drive profitable sales. 

What we did: Value-based packaging and pricing for AGR’s SaaS offering

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“Willingness to Pay helped us create a new packaging and pricing model that lowers the decision threshold for smaller customers and allows us to scale our offering with customer growth.”

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In close collaboration with a core team of AGR’s C-suite stakeholders, including the CEO and CRO, we designed a tiered packaging and pricing model that captured value across customer segments and sizes. We guided a design process that allowed the team to evaluate different pricing structures that scaled with AGR’s software capabilities and inventory value. 

The new framework includes an Inventory IQ package with basic inventory management capabilities and a Pro tier with three modules for demand planning, automated replenishment, and unlimited reporting tools. 

Both tiers include onboarding services and customer resources, such as live in-app chat and access to AGR’s knowledge base, to lower the decision threshold for smaller customers and secure new sales faster.

We also reworked the initial on-prem pricing model to a value-based approach that monetizes every software feature through higher price points.

We then supported AGR’s sales teams with step-by-step instructions for launching the model to new customers and repricing existing customers in a way that minimizes churn. We moved AGR away from sales-led discounting in favor of structural discounts built directly into the new pricing model as volume-based breaks and more granular pricing metrics. While this approach was primarily intended to reduce negotiation friction and protect margins, it also helped accommodate customers’ current sizes and offer clear pricing that evolves with them.

To mitigate risk and ensure pricing integrity, we aligned value and price over time without resorting to inconsistent or reactive sales concessions. This was reinforced by an incremental rollout strategy that began with low-risk customers and gradually expanded to larger enterprises, allowing us to fine-tune the structural discounts along the way to maintain high margins.

Outcome: 50% increase in ACV

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“Willingness to Pay provided instructions that allowed us to explain to our current customers—some of which had been with us for close to 20 years—the reasoning behind our pricing adjustments and minimize risk.”

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‍Here’s a snapshot of the results that AGR has achieved so far:

1. >50% average increase in ACV for existing customers
2. 50% average increase in ACV for new customers

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AGR’s SaaS packaging and pricing model combines higher price points with tiered packaging to increase ACV and ensure scalability through upsell opportunities. The pricing captures value across segments and sizes in a way that is seen as fair by all customers.

Overall, ACV has increased by 50% while pricing has increased by [X]% on average, securing recurring revenue. This boost in revenue is further supported by AGR’s discount system, which allows them to pursue large customers and negotiate with smaller companies to close more deals.

The framework was successfully rolled out to new customers, and existing customers were migrated to the new framework through value-based conversations with AGR’s sales teams.

At the moment of writing, Willingness to Pay continues to support AGR’s pricing initiatives.

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