Pricing Strategy for Software Firms
Pricing can improve your business
Pricing is the most powerful strategic lever that any company will ever find. Better prices can yield higher profits, better customers and improved cash flow.
Hard work is optional
You were told that the path to profitability required hard work, increased functionality, improved quality and increased customer outreach. It's a lie. Fixing your product's pricing and positioning is the most surefire way to earn greater profits.
Even if you understanding that pricing is important, it's a difficult subject to master. Just take a peek at some common software pricing mistakes.
Pricing is powerful
It's not always about maximizing your profitability or revenue. Pricing should be wielded as a strategic tool to weaken your competitors, enter new markets and even change the way potential customers perceive your offerings.
Do you realize that you can change your revenue model to reduce you risk?
Pricing is hard
Do phrases like decoy pricing, Veblen good and free rider mean nothing to you? You can read their definitions in the pricing glossary, but you should probably contact us for help. We're not just your run-of-the-mill marketing consultants. We're software pricing specialists. We literally wrote the book on software pricing and will apply economic analysis and strategy to help you reach your business goals.
Clues that your pricing model is broken
- You cannot explain how you selected your prices - Your prices should come from an analysis of your goals, your competition, your customers and your product.
- You chose your prices based upon costs - Your costs are sunk. They're irrelevant. Your customers don't care how much money you spent developing your software. They care about the value that your software provides.
- You copied a competitor's pricing - Are you selling the exact same product as your competitors? Are your goals the same too? How about your reputation? Even if they're all the same, there's a good chance that they didn't put much thought into their pricing strategies.
How can you help my business?
Although each engagement is tailored to our client's needs, our offerings generally entail one or more of the following:
- Mentoring: We'll guide you through the pricing journey and help you discover your ideal pricing strategy.
- Classes & Workshops: We'll teach you the major concepts in pricing so that you can improve your offerings.
- Marketplace Analysis: We will investigate your offerings (along with your competitors') and produce a playbook for you to improve your pricing and business strategies.
Are you the right person?
Answer these 10 pricing questions and receive strategic advice tailored to your business. Neither email address nor credit card required.
We're here to improve your pricing strategy
Contact us to get started.