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SAAS Pricing discussion that isn't around an obscene price point appears to come down to two issues: - The sense that someone wants a deal - Perceived fairnes
by carsongross 12y ago
SAAS Pricing discussion that isn't around an obscene price point appears to come down to two issues:
- The sense that someone wants a deal
- Perceived fairness of the pricing
If you want to hold firm on your pricing, I'd try to cut a functionality deal (e.g. "we'll allow X more of Y at this cost") to get reciprocity and fulfill the "get a deal" side of things, and then demonstrate the fairness in positive terms (e.g. "We provide 24 hour support and constant monitoring of your swizzle." rather than "This is a niche product, so we have to charge a lot or we'll go out of business.")
Keep the conversations short and to the point ("if you are explaining, you are losing") and don't be afraid to cut bad customers loose. If they haggle around price too much they are not likely to be a good customer and will probably cost a lot in support with a high probability of canceling anyway.
Good luck.
- JSeymourATL 12y ago*Solid advice from carsongross: > don't be afraid to cut bad customers loose. You develop Walk-Away Power by finding more people who want to do business with you. It's OK to shake hands with a prospect and part ways on a friendly basis. You can always circle back a few months later, see if their situation has changed. Suggest reading Secrets of Power Negotiating by Roger Dawson.