The absolute worst answer to give when asked about your pricing

Is “It depends“. This article & writer lost their credibility as soon as I read the first paragraph. When you are in sales of any kind and you cannot clearly explain your pricing strategy, its dependent components and give a ball park estimate, most customers self qualify themselves out of the sales cycle.

That’s not to say you ought to give them the exact price because in most cases you cannot. Not giving ballpark estimates though just seems like you are hiding something.

Pricing strategy overall especially in software is clearly not cost driven. Its value or the perception of value. If you are coming out a version 1 product in  most cases you will have a “sense” for what the value of your product is to its customer and be able to price lower (if you want huge adoption) or price higher (if you want a perception of quality).

Most enterprise sales people will tell you that the “It depends” is a consultant’s answer or probably an answer from someone who has not sold anything that requires you to close a deal.

<Getting off soapbox>

Advertisements