SaaS companies scale revenue not by adjusting price points, but by creating distinct packages for different segments. The same core software can be sold for vastly different amounts to enterprise versus mid-market clients by packaging features, services, and support to match their perceived value and needs.

For its $5k average deal size, SkillVari found a direct US sales model unviable, as travel costs could erase profits. Instead, they built a network of 10 regional resellers, incentivized with commissions up to 20%, to provide local, hands-on demos and support.

A powerful, non-obvious moat for software is deep integration with hardware. DJ software Serato partnered with hardware makers like Pioneer, becoming the industry standard. This makes switching extremely costly for users who have invested thousands in hardware, creating a durable competitive advantage.

For its high-touch VR training product, direct sales were uneconomical due to high travel costs for a relatively low ACV. SkillVari built a network of 10 regional resellers, enabling local, in-person demos that are crucial for closing deals and scaling nationally without an expensive sales team.

After pivoting from hardware to software, SkillVari found value in reintroducing proprietary hardware (like a $2,500 welding gun) as optional accessories. This hybrid model leverages commodity headsets while capturing additional revenue and creating a more immersive, defensible user experience.

Instead of building expensive hardware, SkillVari's software runs on affordable, off-the-shelf headsets like Meta Quest. This allows a starting subscription of $4,000, drastically lowering the barrier to entry compared to competitors whose one-time purchase solutions cost over $35,000.

SkillVari uses a land-and-expand model where schools start with a low-cost software plan using standard VR controllers. As students advance, schools can purchase higher-margin hardware extensions like welding guns, increasing account value over time without a large upfront commitment.

Initially a hardware company, SkillVari's supply chain collapsed during the pandemic, sending revenue to zero. This crisis forced a pivot to a software-first model, allowing customers to buy off-the-shelf Meta or Pico headsets and load the software, creating a more scalable and resilient business.

To combat high CACs, Palta increases LTV by offering entirely separate subscriptions for additive features, not just pricing tiers for the core product. For example, a body scanner subscription alongside a workout subscription. This strategy of upselling distinct value can increase total LTV by 20%.