4 ms·

What's the good reason? Is it because the pricing strategy is charge as much as the customer is willing to pay?

by wesd 10y ago

edgarvaldes 10y ago
Maybe to avoid the competition going [arbitrary amount] dollar cheaper.
mrgoldenbrown 10y ago
because most of the cost is going to involve customization/implementation services of some kind - you don't just buy SAP, run an installer on your PC, and start using it.
ryanSrich 10y ago
I can only speak to what we do at Catalyze. http://content.catalyze.io/blog/why-there-is-no-up-front-pricing http://content.catalyze.io/blog/why-there-is-no-up-front-pri...
- softawre 10y ago
  That was interesting, thank you.
- rorykoehler 10y ago
  From the link: >we believe strongly in a core message of the Lean Startup movement: We want to talk to people. What if people don't want to talk to you? This should be entirely opt-in. Intercom makes this a seamless experience. A certain large segment of people want upfront pricing information with no human involved. If you can't give exact pricing because your product/service is too complicated at least give some example setups and their respective costs. This way at least we have a ball park figure to anchor our thinking. No one wants to waste time exploring unfeasible (due to cost) options. Otherwise it becomes a turn off because it starts to feel like a negotiation rather than an exchange.
beat 10y ago
Pricing for the enterprise can be an incredibly complex thing. License management as well. I used to work for a company that provided custom pricing software for highly complex products (did you know a semi truck can have over 4000 options?). They charged hundreds of thousands for a custom pricing software solution - but it was mostly a custom job, some off-the-shelf software but mostly a ton of customization for that particular customer and their very complex business needs. So no, you can't just charge a flat rate like it's a box of Fruit Loops.
- restalis 10y ago
  That's not "pricing for the enterprise" you're describing, it's pricing for customizations. Yes, each customization can be negotiated separately and when there can be "over 4000 options" it makes sense to not display them all but to guide the client through. This may be a case where complexity may warrant private interaction (or at least it used to be that way as nowadays the entire array of option complexity can be left to be sorted out with a software application).
  - ef4 10y ago
    > That's not "pricing for the enterprise" you're describing, it's pricing for customizations. This is not a very meaningful distinction. Big enterprise software deals inevitably involve customizations and integrations.
    - restalis 10y ago
      Yes, I wasn't trying to put them in antithesis, I was trying to point out the wider context, and yes, I agree with you (that the narrower context automatically involves all of the wider encompassing context). The meaningful distinction is that customization warrants contact requirement, for both big enterprises and individuals.

What's the good reason? Is it because the pricing strategy is charge as much as the customer is willing to pay?

by wesd 10y ago

What's the good reason? Is it because the pricing strategy is charge as much as the customer is willing to pay?

edgarvaldes 10y ago

Maybe to avoid the competition going [arbitrary amount] dollar cheaper.

mrgoldenbrown 10y ago

because most of the cost is going to involve customization/implementation services of some kind - you don't just buy SAP, run an installer on your PC, and start using it.

ryanSrich 10y ago

I can only speak to what we do at Catalyze. http://content.catalyze.io/blog/why-there-is-no-up-front-pricing http://content.catalyze.io/blog/why-there-is-no-up-front-pri...

softawre 10y ago
That was interesting, thank you.
rorykoehler 10y ago
From the link: >we believe strongly in a core message of the Lean Startup movement: We want to talk to people. What if people don't want to talk to you? This should be entirely opt-in. Intercom makes this a seamless experience. A certain large segment of people want upfront pricing information with no human involved. If you can't give exact pricing because your product/service is too complicated at least give some example setups and their respective costs. This way at least we have a ball park figure to anchor our thinking. No one wants to waste time exploring unfeasible (due to cost) options. Otherwise it becomes a turn off because it starts to feel like a negotiation rather than an exchange.

beat 10y ago

Pricing for the enterprise can be an incredibly complex thing. License management as well. I used to work for a company that provided custom pricing software for highly complex products (did you know a semi truck can have over 4000 options?). They charged hundreds of thousands for a custom pricing software solution - but it was mostly a custom job, some off-the-shelf software but mostly a ton of customization for that particular customer and their very complex business needs. So no, you can't just charge a flat rate like it's a box of Fruit Loops.

restalis 10y ago
That's not "pricing for the enterprise" you're describing, it's pricing for customizations. Yes, each customization can be negotiated separately and when there can be "over 4000 options" it makes sense to not display them all but to guide the client through. This may be a case where complexity may warrant private interaction (or at least it used to be that way as nowadays the entire array of option complexity can be left to be sorted out with a software application).
- ef4 10y ago
  > That's not "pricing for the enterprise" you're describing, it's pricing for customizations. This is not a very meaningful distinction. Big enterprise software deals inevitably involve customizations and integrations.
  - restalis 10y ago
    Yes, I wasn't trying to put them in antithesis, I was trying to point out the wider context, and yes, I agree with you (that the narrower context automatically involves all of the wider encompassing context). The meaningful distinction is that customization warrants contact requirement, for both big enterprises and individuals.