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How Pricing Affects Selling Strategies

Forbes: How Pricing Affects Selling Strategies

Published: September 22, 2023 | By Chris Mele |

Butterfly effect in pricing and selling

To read the original Forbes article, click here.

“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


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Chris Mele

About The Author Chris Mele

Chris is Managing Partner for Software Pricing Partners, where he and his team have launched some of the software industry’s most transformative monetization strategies. As a former software company founder and leader, Chris focuses on the impact effective licensing, packaging and pricing strategies can make on the most essential software company metrics: revenue, profit and valuation. Under his leadership, Software Pricing Partners has become an influential voice for growth-oriented software companies both large and small.


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