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How Pricing Affects Selling Strategies

Forbes: What Software Companies Get Wrong About Pricing

Published: August 23, 2023 | Updated: November 14, 2023 | By Chris Mele |

What Software Companies Get Wrong About Pricing

To read the original Forbes article, click here.

B2B Pricing is a Science

Imagine this: Tanya and Tessa are trying to purchase the same software solution for their companies. They have identical use cases but Tessa paid half the price that Tanya did for the software.

Tanya and Tessa know each other and compare notes. Uh oh. It’s a tale of two software buyers, and unfortunately, it’s a common one in software sales.

Inconsistent software pricing has existed for decades, and the problem compounded in the early 2000s with the introduction of agile development. Customers could now exchange information in nanoseconds, but many software companies have not updated their pricing strategies to reflect this new reality.

Quick Forbes Article Summary

In this month’s Forbes column, we cover:

  • A brief history of software development and how Agile development exacerbated challenges with pricing.
  • The failure of software companies to recognize and treat pricing as a science.
  • The consequences of friction-filled pricing processes.
  • How buyers show up to your sales pipeline already equipped with net prices others have paid.
  • Steps you can take to create more transparent, frictionless buying processes for your customers and prospects.

You can read our full article on Forbes: What Software Companies Get Wrong About Pricing

 

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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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