Deal Pricing Philosophy

Extracted Attributes

• Key Principle 1

  Conviction

• Key Principle 2

  Speed

• Strategic Element

  Shift to market-leading SaaS Deals

• Specific Industry Focus

  Software Investing

• Primary Application Area

  Private Equity

• Operational Component (Initial)

  Decisive cost-cutting at closing

• Operational Component (Support)

  Successful fundraising

• Operational Component (Subsequent)

  Rigorous focus on growth

Timeline

• Thoma Bravo shifted its focus to market-leading SaaS Deals, demonstrating the application of its deal pricing philosophy in a new market segment. (Source: related_documents)

  2010

New Deal

The New Deal was a series of wide-reaching economic, social, and political reforms enacted by President Franklin D. Roosevelt in the United States between 1933 and 1938, in response to the Great Depression, which had started in 1929. Roosevelt introduced the phrase upon accepting the Democratic Party's presidential nomination in 1932 before winning the election in a landslide over incumbent Herbert Hoover, whose administration was viewed by many as doing too little to help those affected. Roosevelt believed that the depression was caused by inherent market instability and too little demand per the Keynesian model of economics and that massive government intervention was necessary to stabilize and rationalize the economy. During Roosevelt's first hundred days in office in 1933 until 1935, he introduced what historians refer to as the "First New Deal", which focused on the "3 R's": relief for the unemployed and for the poor, recovery of the economy back to normal levels, and reforms of the financial system to prevent a repeat depression. Roosevelt signed the Emergency Banking Act, which authorized the Federal Reserve to insure deposits to restore confidence, and the 1933 Banking Act made this permanent with the Federal Deposit Insurance Corporation (FDIC). Other laws created the National Recovery Administration (NRA), which allowed industries to create "codes of fair competition"; the Securities and Exchange Commission (SEC), which protected investors from abusive stock market practices; and the Agricultural Adjustment Administration (AAA), which raised rural incomes by controlling production. Public works were undertaken in order to find jobs for the unemployed (25 percent of the workforce when Roosevelt took office): the Civilian Conservation Corps (CCC) enlisted young men for manual labor on government land, and the Tennessee Valley Authority (TVA) promoted electricity generation and other forms of economic development in the drainage basin of the Tennessee River. Although the First New Deal helped many find work and restored confidence in the financial system, by 1935 stock prices were still below pre-Depression levels and unemployment still exceeded 20 percent. From 1935 to 1938, the "Second New Deal" introduced further legislation and additional agencies which focused on job creation and on improving the conditions of the elderly, workers, and the poor. The Works Progress Administration (WPA) supervised the construction of bridges, libraries, parks, and other facilities, while also investing in the arts; the National Labor Relations Act guaranteed employees the right to organize trade unions; and the Social Security Act introduced pensions for senior citizens and benefits for the disabled, mothers with dependent children, and the unemployed. The Fair Labor Standards Act prohibited "oppressive" child labor, and enshrined a 40-hour work week and national minimum wage. In 1938, the Republican Party gained seats in Congress and joined with conservative Democrats to block further New Deal legislation, and some of it was declared unconstitutional by the Supreme Court. The New Deal produced a political realignment, reorienting the Democratic Party's base to the New Deal coalition of labor unions, blue-collar workers, big city machines, racial minorities (most importantly African-Americans), white Southerners, and intellectuals. The realignment crystallized into a powerful liberal coalition which dominated presidential elections into the 1960s, as an opposing conservative coalition largely controlled Congress in domestic affairs from 1939 onwards. Historians still debate the effectiveness of the New Deal programs, although most accept that full employment was not achieved until World War II began in 1939.

Web Search Results

• What a Deal: 4 Pricing Strategy Examples - Insight To Action

  Each individual product has its own anchor price, shown as a crossed-off list price. Consumers are comforted that, no matter what price point they’re comfortable with, they’re going to get a solid deal. Consumers who want “the best deal” can go for the kettle that’s 27% or 23% off. Price-sensitive consumers have a “reasonable” $29.99 price point. Top-of-the-line consumers can choose the “luxury” $84.99, $79.99 or $72.99 price points, depending on which style they prefer. [...] Department store discounter TJ Maxx has the clearest pricing strategy example. Each product is given an obvious anchor price, listed on the price tag as the “compare at” price. [...] When consumers purchase a single product, they are making several choices (whether consciously or not). The most basic choice is to buy or not to buy. Once they move past that binary, the choice becomes _which one_ to buy—and _when_ to buy it. The selection criteria can include: Brands, i.e., Name brand or private label Product options, i.e., size, color, features, performance claims Channel, i.e., online or in-store Price, i.e., good, better or best pricing

• What is a Pricing Strategy? - DealHub

  This strategy considers customer needs, wants, and desires, as well as other factors such as market conditions and competition. Companies that use this model can increase their profits by focusing on the company’s value proposition rather than solely the cost of production and delivery. [...] Usage-Based Pricing Pays only for what is used, fair for customers Can be complex to implement and track, may discourage usage Tiered Pricing Offers discounts for higher usage, encourages volume Can be difficult to understand, may lead to unexpected charges Subscription-Based Pricing Predictable revenue, customer loyalty Can be perceived as restrictive, may limit flexibility Marginal Cost Pricing Maximizes profit, efficient allocation of resources [...] Success-based pricing has been gaining traction in the business world due to its ability to reward companies for achieving success. Companies using this pricing strategy do not collect payment for their products or services upfront. Instead, compensation is based on performance metrics, such as the number of sales or subscribers acquired or customer satisfaction scores.

• What is Pricing? | DealHub

  The main goal of pricing is to find the optimal balance between profit and customer satisfaction. A well-crafted pricing strategy should consider costs, competition, and perceived value to ensure profitability while also appealing to customers and driving sales. ### What is the key to successful pricing? [...] If customers are already accustomed to a certain pricing structure, it might be harder for you to convince them otherwise. If your competitors are selling a similar product, pricing yours too far above or below that price can affect your perceived value and thus willingness to pay. Competitors can be a reference point; you can price a higher-value or budget-friendly product above or below their standard offering. ### Business Objectives [...] Penetration pricing — Setting a low initial price to gain a foothold in the market. Price skimming — Setting a high price to capture the demand of early adopters before gradually lowering it. Bundle pricing — Offering a package deal with multiple products or services at a discounted price. Value-based pricing — Setting prices based on the perceived value of your product to customers.

• Pricing Strategy and Pricing Decisions | BCG

  Pricing strategy determines how value creation is incentivized and shared between buyers and sellers—reflecting a company’s philosophy for acquiring, retaining, and satisfying customers by sharing value with them fairly. How much a company can share depends on the characteristics of its market and how it chooses to use its competitive advantages in that market. How much value a business leader wants to share depends on their company’s short- and long-term objectives.A strong pricing strategy

• 10 Powerful Psychological Pricing Strategies to Boost Sales

  Bundle pricing is a psychological pricing approach that combines multiple products or services into a single package deal. This pricing strategy creates perceived value by offering a collection of items at a price that appears more attractive than buying each item separately. It simplifies customers' decision-making while encouraging larger purchases. [...] For instance, a beauty retailer implements this pricing tactic with their skincare range. Instead of selling individual products (cleanser $25, toner $20, moisturiser $30), they create a complete skincare routine bundle for $65. This psychological pricing tactic makes the package appear more valuable as customers save $10 while getting a complete solution. Implementation Tips for Sales Optimisation: