“How many model runs do you plan on using this year for your artificial intelligence needs?” It’s a question a software salesperson might ask a prospective customer during a conversation about purchasing AI models for vehicle detection, license plate detection, facial recognition and dozens of other use cases. This hypothetical B2B software company uses a pricing structure where customers pay each time an AI model runs.
But the prospect in this scenario doesn’t have a clear answer because the number is somewhat unknowable at this juncture of the sales process.
Welcome to the intersection of pricing and selling. Seemingly innocuous decisions on how to price your software can lead to enormously difficult situations for sellers and buyers alike.
Quick Forbes Article Summary
In this month’s Forbes column, we cover:
- Pricing’s role as a sales enablement vehicle.
- The dangers of viewing pricing’s role as that of just-another-product attribute.
- The consequences of copying competitors.
- How convoluted pricing strategies make it difficult for sellers to defend and explain the company’s pricing.
- How pricing simplification rules the roost in sales.
- The dangers of special discounts and the subsequent pain on renewal negotiations.
- How pricing shapes the sales dialog and, if done incorrectly, extends prospect decision making.
- And, most importantly, what you can do to simplify your pricing strategy.
You can read our full article on Forbes: How Pricing Impacts Selling Strategies