Ever since different companies and services, like streaming or software, came into our lives, we are used to being offered different pricing levels, which include different features. For example, Netflix offers a different viewing quality for each level of payment and several different devices that can connect in parallel to its services. But many SaaS companies today are faced with the question of how to price different customers. And how to price different services that each customer chooses dynamically. In general, any change in pricing currently requires changes and the work of several departments in the company. A new Israeli startup that was unveiled yesterday (Wednesday) thinks that the method in which most companies work today actually hurts them, and it offers them a system that will help them in this complex task.

"The problem with pricing today is the code, not the collection"

Israeli startup Stigg has developed a product that helps SaaS companies in the B2B field to produce a dynamic pricing model that is always updated. In a conversation with Geektime, Dor Sasson, co-founder, and CEO of Stigg, says that to develop their product, the company examined pricing models of more than 250 different SaaS companies - young and old - and created databases with insights into pricing trends, which can help other companies make decisions– regarding their pricing models and their position in relation to the market. In addition, the founders spoke with more than 150 company founders, CXOs (Chief Experience Officers), CEOs, and Growth and Product Managers - to understand the implications of changing the pricing model for them.

According to Sasson, without Stigg's product, every small change in the model requires significant changes and affects all areas of the company: from the site, through the sales plan, the CRM system, the product, revenue and of course customer billing. The need to allocate that many resources to maintain a change in the pricing model discourages companies, at least in some cases, from making the change. Stigg's product on the other hand allows companies to make the change in the pricing of their products without fear of the many processes they had to perform in-house. In general, the company talks about the fact that the main problem today in terms of pricing is "the code, not the collection".

In practice, this is an API developed by the Israeli startup for companies, which the developers implement and connect on the one hand to the application and the end-user experience, and on the other hand to the clearing systems, customer management, and the company's pricing page on the site. Once the developers have integrated the Stigg API into their systems - the product and growth employees in the companies already control the product - without having to turn to the development team. Stigg's product allows companies not only to make long-term changes in their pricing model but also to experiment with different models over a period of time to test what change is best for them.

Any developer can use Stigg's SDK and API to create free trials, payment walls and Freemium tracks; have ‘on and off’ features and restrictions for those features inside and outside the product itself (like for the public pricing page) – all depending on the customer's route without acknowledging the subtleties of the billing and clearing systems.

“This basically creates a clean separation between the applicative code that knows only the ID of the feature itself and its configuration, and the 'sales' structure of the routes, packages, and extensions that a customer can purchase. Stigg also bypasses the integrations typically required to build to synchronize customer information and routes with other systems. "Once Stigg is installed, there is no need to mess with APIs for billing systems (Stripe for example) and CRM systems (such as Hubspot) – the platform simply makes sure that the data flows to the right places without the developers having to worry about it," Sasson tells us.

“Because the system connects to all the important points in the organization, it allows customers to experiment, make changes, and better connect the value their users get from the product depending on the price. Stigg gives SaaS companies all the building blocks needed to offer their users a variety of payment options, with a minimum investment to development hours,” says Sasson.

Well, now the most obvious question: do you use your own system to price your service?

“Of course, we use it. It is a model that has proven itself, and as the company grows, this is what will help us grow in scale.”

Stigg, founded by Dor Sasson and Anton Zagrebelny, was unveiled yesterday with a $6.4 million Seed funding led by Unusual Ventures - the fund that previously invested in Robin Hood, Webflow and Carta. The funding round also included participation from the Emerge Fund and other angel investors. The company's headquarters are in Tel Aviv, where research and development activities are concentrated. The current capital will allow Stigg to continue to accelerate the company's development and growth processes.