Council Post: To Fix The Broken State Of Software Pricing, The Industry Must Overhaul The Current System
Summary
This mindset is a hallmark of the “land and expand” selling strategy that many software companies leverage in an attempt to build rapport with customers, with the hope that, eventually, they’ll be able to secure big-ticket deals. Over the years, the rigid beliefs that have kept the dollar amount a mystery for buyers as long as possible have simultaneously created and bolstered a dysfunctional system that prevents honest discussions about pricing with customers earlier in the process. But dig deeper, and you’ll find that even if executives have provided that training to their salespeople, in many cases, they haven’t put the right resources and processes in place to enable sales representatives to have those conversations. Here’s a common scenario I’ve observed: Someone at the company, typically with limited knowledge of pricing, calculates averages meant to guide the salespeople on where deals should land at various volumes of use. Salespeople can be told over and over again that they must facilitate more transparent, dynamic sales dialogues early on during interactions with prospects, but without the proper training, processes and supporting technology, it will be difficult and, in many cases, impossible for them to succeed.