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SaaS Pricing: Ditching the Smoke & Mirrors

Published: January 5, 2024 | Updated: January 22, 2024 | By Chris Mele |

SaaS Pricing Smoke and Mirrors

To read the original Forbes article, click here.

Forbes: To Fix The Broken State Of Software Pricing, The Industry Must Overhaul The Current System

The software industry’s legacy pricing game is rigged. Opaque tiers, hidden fees, and sales tactics leaving customers often feeling cheated.

What do we need? A total system overhaul, powered by transparency.

Why the fuss? The current system breeds distrust, slows down sales, and hinders true value recognition. Instead, in this article we urge a shift towards:

  • Clear, upfront pricing: No more hidden costs or confusing tiers. Be honest about what customers are paying for.
  • Open communication: Ditch the salesy pressure, engage in genuine dialogue about value and address concerns head-on.
  • Data-driven pricing: Use actual usage and market trends to create models that reflect what the software is truly worth.

But it’s not just talk. To support this new philosophy, companies need to:

  • Invest in supporting technology: While automated billing is important, think instead of supporting tools that can help salespeople dialog about pricing and the range of options being explored.
  • Train salespeople: Equip them to understand and communicate the value proposition of different pricing options–and compare them on the fly.
  • Reward transparency: Ditch short-term sales goals and incentivize building trust and long-term customer relationships.

The payoff? Happy, loyal customers, faster sales, and sustainable growth. By putting trust and value first, software companies can rewrite the pricing playbook and win in the long run.

Ready to ditch the smoke and mirrors? Read our full article on Forbes: To Fix the Broeken State of Software Pricing, the Industry Must Overhaul the Current System

 

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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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