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“Beyond the obvious benefits of optimal pricing and repositioning our SaaS offerings, our partnership with Willingness to Pay brought the whole organization together. They created a shared understanding of the value of our software products across our teams and customers.”

– Morten Klank, Former Managing Director of Envidan Software

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1. 600% increase in pricing for the Wastewater plant optimization platform 

2. 100% increase in pricing for the Maintenance Management Application

3. Zero customer churn

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‍About

Envidan is a consulting engineering company that provides utilities, municipalities, and industries with sustainable solutions for the entire water cycle. One of Scandinavia's leading water and wastewater specialists, the company offers advisory services, software products, and turnkey projects like water supply systems and wastewater treatment plants.

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Situation: Legacy software offerings slowed Envidan’s growth trajectory

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‍“We needed an expert who knew software businesses and pricing and could understand the complexity of our services, products, and customers. Willingness to Pay was the ideal partner for our needs.”

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Envidan had been growing consistently since founded and over time introducing over 20+ SaaS offerings. Since the company treated these offerings as add-ons to improve operations when delivering consulting projects or ongoing service to clients, the packaging and pricing model failed to monetize the software’s value.

Without the proper structure, these legacy SaaS solutions did not capture value or generate sufficient ARR - and many had accumulated significant technical debt which severely impacted their unit economics and operational efficiency. While offering these solutions as supporting add-ons to the core professional service business had enabled growth, the commercial performance of the entire portfolio of products was now unsustainable and difficult to scale.

To modernize the company's software business, Envidan decided to focus on developing new pricing models for eight core products, and build these into an independent, self-sustaining business division. Preparing the new pricing for validation in Q4 of 2022 would enable the company to transition customers to the new structure in early 2023.

However, many of Envidan’s 400 employees viewed software as a consulting tool.
Further, government mandates to reduce operational costs by 2% annually for most water utilities - Envidan's primary customer group - further complicated the situation. Increasing pricing without showing the clear ROI could negatively impact customer retention when transitioning to the new packaging and pricing.

Envidan needed a pricing model that would modernize their pricing approach, drive profitable sales, increase ACV, and minimize churn.

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What we did: Repackaging and a modern SaaS pricing architecture

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“Willingness to Pay not only had the technical understanding to redesign our pricing models effectively but also served as a linchpin throughout our company. They instantly earned the respect of our teams and successfully integrated our new pricing to meet our goals for 2023.”

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Together with a core team from Envidan we transformed the packaging and pricing structure of several core SaaS products, including EnviStyr, Envidan’s wastewater plant optimization solution, and EnviDrift, the maintenance management system offering.

The new packaging focused on core jobs-to-be-done and around resource allocation and asset management and separated out IT value-adds like integrations and data exports, to drive monetisation of items that had direct cost to Envidan. 

The new packaging focused on core jobs-to-be-done and optimizing the long-term strategic relationship and value delivered to the customers. 

We determined price points based on the customers’ use cases and the cost of alternatives, such as calculating electricity savings, reduced regulatory penalties for chemical use, and the system's ability to keep peak load volumes below capacity levels to avoid the need for large capital investments to expand wastewater plants' physical infrastructure.

‍Real pricing power appears when packaging is built around the customer’s true jobs and when price points anchor against the economic impact you help them achieve. By quantifying clear savings and avoided costs you can justify materially higher price levels while keeping the customer narrative honest and compelling.

This allowed us to clearly demonstrate value and allowed for significant price increases.

We further bundled the software solution with a service concept that allowed wastewater plants free and unlimited access to certain types of consulting services from the highly technically skilled engineers of Envidan. 

This enabled us to re-launch the solution with a strong new narrative and argue for a significantly different price point. 

Prior to launch we secured internal executive buy-in across functions before also validating the new packaging, pricing model and service concept with customers via interviews. 

This built a consensus that supported rollout across new and existing customers.

Finally we supported the Envidan team throughout a sales test of the new pricing, dealt with customer negotiations and objection handling before supporting a complete renegotiating with all existing clients.

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Outcome: 600% price increase on EnviStyr

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“With Willingness to Pay, we now strike a balance between what our customers pay for our product and the value we deliver. The pricing increase allows us to continue enhancing our product to deliver better outcomes.”

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Here’s a look at what we achieved through our partnership: 

1. 600+% increase in pricing for EnviStyr

2. 100% increase in pricing for EnviDrift

3. Zero customer churn

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With Envidan’s new packaging and pricing model, the company now has an independent SaaS division that drives ARR while meeting customer needs. This transformation helped to position Envidan as a leader in sustainable water management solutions, with scalable SaaS offerings that drive long-term profitability.

The prices of their two core products have increased by 600% and 100%, respectively, with zero customer churn. This increase reflects not just higher price points but also a shift toward value-based pricing that customers agree helps them meet regulatory requirements.

Despite offering certain consulting services for free as part of the built-in service concept, professional service revenue actually increased across the client base as the new service concept allowed for a closer customer relationship.

The value unlock was not just in higher price points but also in reconditioning Envidan’s approach to pricing, packaging, and commercial understanding of the relationship between consulting and SaaS revenue.

Envidan now has clear tools and processes to have value based conversations with their client base - rooted in the packaging architecture of their products.

By partnering with Willingness To Pay, Envidan transformed their software offerings into an independent business unit whose pricing and packaging reflect the value of the product and generate consistent revenue.