The future of software pricing excellence: The new state of the art

Three different pricing models are in use by software vendors that may be leading edge, in the mainstream or lagging their competitors.

 

The future of software pricing
 

A myriad of pricing strategies for a myriad of business models

At a time when the enterprise software sales model is shifting from product-based to portfolio-based and customers are adjusting their purchasing decisions to include their perception of added business value, vendors can no longer consider their pricing models incidental. Pricing can, in fact, play a critical role in business strategy.

Analysing pricing waterfalls helps close leaks

The future of software pricing
 

Analysing pricing waterfalls helps close leaks

In the face of changing business models, incorporating new software pricing strategies and tactics can help deliver:

• Higher win rates---closing a higher percentage of sales opportunities can increase revenues
• Improved price realisation---reducing the gap between ‘pocket’ (real) and list prices at constant business volume supports increases in gross margins
• Decreased revenue leakage---reducing the gap between committed-to purchase and actual purchase volumes can boost revenues

The time to move definitively toward best pricing practices is now. This paper provides a path toward a more coherent, organisation-wide pricing model that delivers proven results by combining analytics with formalised processes and standards.

Read the full article and learn how to move up the laggard to leader spectrum in pricing strategy.