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Of course it works, otherwise they wouldn’t continue using it. It’s a simple way to extract the most value from a customer, as well as filter out customers the
by bdibs 6y ago
Of course it works, otherwise they wouldn’t continue using it.
It’s a simple way to extract the most value from a customer, as well as filter out customers they don’t deem viable for their business.
- tbrock 6y agoThat’s a load of crap sales folks tell their leaders. Who’s out there measuring that the value created by this strategy exceeds the value sitting on the sidelines because it grinds their gears? Maybe it doesn’t? I’m sure a lot of people that feel similarly command millions if not billions of budget.
- wheels 6y agoI've known more companies start with utility pricing and move to "high touch" sales than companies move the other way. Companies don't want to have that kind of sales process. They usually have to. Some of the mechanics of that is that if you're doing very large contracts, a lot of the software buyers expect things to be that way. For a lot of businesses, a couple expensive accounts are worth more than all of the small accounts put together. I've seen lots of companies start to disrupt a particular market with utility pricing only to fall back to enterprise sales when they realize that there's a reason everyone else in their industry does that.
- tbrock 6y agoFor the higher level tiers absolutely, for a trial just take my credit card and get out of my way. I’ll call you when I want to upgrade my plan. You aren’t “selling” me anything. The product sold itself. At that point let’s have a steak dinner and figure out the details.
- wheels 6y agoIn a lot of those cases, the company has decided that the lower tiers do not exist, because they lose money, and part of the point of the sales process is to weed them out. (And even if they do have lower tiers, they don't want to hurt their actually profitable higher tiers by providing price anchoring.)
- cubecul 6y agoDepends on the product. Not all products are built for these types of trials. If a product needs more heavy lifting to show value then you are more likely to have a sales team. And just because you can evaluate that complex product by yourself doesn't mean that happens for everyone else. Selling, by the way, is not just demo'ing the product. It's also navigating legal, finance, security, end users who don't know as much as you do, etc. As a buyer, it's sometimes easier to have your rep help you identify what the quickest path is. Lets me move faster, anyway.
- deleted 6y ago[deleted]