Software as a service (Saas) pricing can be a tricky thing. Vastly different than commodity pricing, SaaS pricing strategy tends to revolve around ongoing utility rather than a cut-and-dry "flinch test."
The most common opponent to which business sellers lose deals is status quo. Getting a seller to consider alternatives requires research, strategy, and hard work. In contrast, selling on price is easy.
Your best customers will buy your product any way you sell it. But how can you "sell" new customers, more specifically, the large group of people who visit your business and leave without ever buying anything?
They gave me their business cards. I gave them mine. But on the way home, I began to feel a creeping sense of dislocation and dread -- like I was auditioning for a movie I wasn't quite sure I wanted to be in.
I just downloaded the trial for Adobe Premiere Pro 7.0, which is available only as part of their Creative Cloud system. As explained by Wired, Creative Cloud isn't really a cloud; it's a fancy way of repackaging subscription-based software.
The salesperson said, "We will only discuss price in person." Their unwillingness to share any pricing information raised a red flag. Was their pricing so offensive that they could not share it? Did they not have consistent pricing? Did they not price their meats by the pound?
The Chinese are (not) coming! It will be decades before Chinese corporations -- even in strategic industries such as renewable energy or information technology -- beat American, Western, and European companies on their own turf. Indeed, it may never happen at all.
Over the last couple of weeks I have been getting an increasing number of emails from business owners asking how they can correctly price their products and services so I have decide to answer their question in today post.
Don't ask your customers for their "willingness to pay." Instead, do your homework and ask them about their value drivers. Then tell them what they should pay and why, and you'll be on a happy road to higher profitability.
Why do we sell books as if they were potatoes when many of them are actually more like truffles? Hard coal, everyday sea salt, water, topsoil. They go for the same price, everywhere, because it's all the same.