R I C I NG S T R AT E G I E S

SOFTWA R E P

BSCS-5
SMART S/W PRICING STRATIGES

• SMART SOFTWARE PRICING STRATEGIES CAN MAKE OR BREAK SUCCESS.

PRICING IMPACTS DESIGN DECISIONS AND SHOULD BE REVIEWED WITH THE
LONG TERM IN MIND. STAY COMPETITIVE AND AGILE WITH PRICING TO KEEP
AHEAD OF THE COMPETITION. A WELL-DESIGNED PRICING ARCHITECTURE WILL
SIMPLIFY CONTRACT NEGOTIATIONS AND NEW PRODUCT INTRODUCTIONS.
INTRODUCTION
• DESIGNING A SOFTWARE PRICING STRATEGY THAT MAPS TO THE PRODUCT
ARCHITECTURE, AND, OF COURSE, TO THE MARKET OPPORTUNITY. OWNERSHIP
OF THE RESPONSIBILITY FOR PRICING MAY DIFFER DRAMATICALLY IN A
COMPANY. IN SOME CASES, SALES, DEAL DESK, OR MARKETING MAY OWN
PRICING, IN OTHERS, PRODUCT MANAGEMENT MAY OWN IT. REGARDLESS OF
WHERE THE CORE RESPONSIBILITIES LIE, THE PRODUCT MUST BE ABLE TO
PROVISION, TRACK AND REPORT AGAINST THE SELLING METERS CONSIDERED IN
A PRICING STRUCTURE.
INTRODUCTION

• DESIGNING AN EFFECTIVE PRICING STRATEGY AND BUSINESS MODEL IS ONE OF

THE MOST IMPORTANT JOBS IN A GO-TO-MARKET PLAN. IT IS NOT AN EXACT
SCIENCE, BUT A PROCESS OF CONSTANT NEGOTIATION, MARKET VALIDATION,
OPERATIONAL VALIDATION, INDUSTRY COMPETITIVENESS, AND CUSTOMER
ACCEPTANCE.
1. EXPLORE POTENTIAL PRICING APPROACHES

• THE GOAL IN ANY PRICING MODEL IS TO ENTICE CUSTOMERS TO PURCHASE

WITH MINIMUM CONTROVERSY. BE CLEAR ON THE LOGISTICS RELATING TO
MEASURING USAGE IN ORDER TO HAVE A VIABLE AND SUSTAINABLE MODEL.
LICENSED SOFTWARE
• LICENSING SOFTWARE IMPLIES PERMISSION FOR SOMEONE TO USE YOUR SOFTWARE–EITHER AS AN
INDIVIDUAL OR AS AN APPLICATION THAT WOULD BE TIED TO THE EQUIPMENT ON WHICH IT IS INSTALLED.

• PRODUCT MANAGERS DEFINE THE TERMS OF USAGE. THE LEGAL TEAM WILL HELP DEFINE THE LEGAL
RIGHTS THAT WILL BE TIED TO THE END USER LICENSE AGREEMENT (EULA) AND ANY CHANNEL/PARTNER
AGREEMENTS.

• IN THIS MODEL, PRICING IS OFTEN ACCOMPANIED BY SETUP OR INSTALLATION (OR PROVISIONING) FEE AND
A MAINTENANCE FEE.

• THE UPSIDE OF LICENSED SOFTWARE IS THAT REVENUES ARE RECEIVED UP FRONT–A ONE-TIME BOOST TO
THE BOTTOM LINE. THE DOWNSIDE IS THE RISK OF NOT HAVING A STRONG RELATIONSHIP WITH CLIENTS.
SUBSCRIPTION SOFTWARE

• SOFTWARE-AS-A-SERVICE (SAAS) OR CLOUD MODELS IMPLY THAT A SUBSCRIBER

WILL “RENT” THE SERVICE–SO THE EULA WOULD BE REPLACED WITH AN END
USER SERVICES AGREEMENT (OR SIMILAR TERMINOLOGY) THAT DEFINES ACCESS
PERMISSIONS AND TERMS OF USE ASSOCIATED WITH USING THE SERVICE. IT IS
IMPORTANT TO DEFINE THE METHOD ON WHICH THE SYSTEMS WILL COUNT AND
CHARGE FOR SERVICES.
SUBSCRIPTION SOFTWRAE

• SUBSCRIPTION SERVICES SHOULD BE MEASURED AS A VALUE OF USAGE

METERING OVER TIME. VARIOUS MODELS MAY BE USED FOR A SERVICES
AGREEMENT, INCLUDING:
FREEMIUM
• FREEMIUM: OFTEN USED AS A “LOSS LEADER,” A FREEMIUM MODEL IMPLIES THAT
THE SERVICE RECEIVED IS FREE OF CHARGE. WHEN DESIGNING FREEMIUM MODELS,
THE EXPECTATIONS ARE THAT IT IS A VERY SIMPLE VERSION OF THE OFFER AND THAT
THE VENDOR WOULD EXPECT MOST USERS TO GRADUATE TO A PAID VERSION.
LIMITATIONS WOULD TYPICALLY BE BASED ON THE VOLUME OF USAGE.

• FOR EXAMPLE, AN EXPENSE AND INVOICE MANAGEMENT FREEMIUM PACKAGE MAY

ONLY ALLOW A CUSTOMER TO HAVE 3 ACTIVE INVOICING ACCOUNTS, MAY NOT
INCLUDE PAYROLL PROCESSING, ETC. BUT FOR “NOMINAL MONTHLY FEE” CUSTOMERS
WOULD BE ABLE TO “TURN ON” THE ADDITIONAL FEATURES.
USAGE FEE

• USUALLY A RECURRING FEE FOR THE SERVICES BEING RENDERED IN THE SAAS
MODEL. VARIOUS METERS MAY BE REQUIRED FOR USAGE RATE CALCULATIONS.
CONSIDER THESE CAREFULLY, AS THE MORE COMPLEX THE RATE, THE HARDER
IT WILL BE FOR CUSTOMERS TO ESTIMATE THEIR CONSUMPTION (FOR BUDGET
PURPOSES) AND THE MORE COMPLEX THE CONTRACT NEGOTIATIONS WILL BE.
KEEP IT SIMPLE. SOME METERS TO CONSIDER:
TRANSACTION PER SECOND(TPS)
• A SIMPLE COUNT OF CONCURRENT TRANSACTIONS IN EACH SECOND, AS AN
AVERAGE OVER TIME. THIS METER IS OFTEN USED IN TELECOM SERVICES (I.E. SMS
MESSAGES). SOME SYSTEMS WILL MEASURE EVERY 5 MINUTES, THEN DIVIDE BY
300–AS A METHOD OF CALCULATION. THEN, FROM A BILLING PERSPECTIVE, THE
HIGHEST NUMBER OF TPS (PEAK TPS) IS THE METER ON WHICH ANY ROYALTIES OR
FEES ARE CALCULATED.

• IF THE PRICING IS CALCULATED WITH USAGE BREAKPOINTS AGAINST VOLUME

DISCOUNTING, TRADITIONALLY USAGES WOULD BE ROUNDED UP TO THE NEAREST
PEAK TPS CATEGORY
NUMBER OF TRANSACTIONS

• NUMBER OF TRANSACTIONS (I.E. API CALLS) IN EACH PERIOD–OR AS A BLOCK

THAT, WHEN USED UP, MUST BE RENEWED
MEGA BITTS PER SECOND

• MEGABIT PER SECOND (MBITS/S, MBPS DO NOT CONFUSE WITH MBITS/SEC WHICH
WOULD BE MILLIBIT PER SECOND) — OR GIGABIT PER SECOND (GBITS/S, GB/S OR
GBPS)–ALSO USED FOR DATA TRANSFER MEASUREMENTS, OFTEN IN HIGH-SPEED
NETWORKS
STORAGE METERS

• STORAGE METERS–USED AS A STATIC COUNT OF HOW MUCH STORAGE WAS USED

IN EACH PERIOD
NUMBER OF SUBSCRIBERS

• NUMBER OF SUBSCRIBERS–MEASURING UNIQUE IDENTITIES THAT ARE ALLOWED

ACCESS TO THE SERVICE; SIMPLE COUNT
NUMBER OF CONCURRENT SUBSCRIBERS

• MEASURING THE MAXIMUM NUMBER OF CONCURRENT SUBSCRIBERS–THINK OF

THIS AS A POOL OF LICENSES THAT CAN BE SHARED; THIS METER IS NOT USED
OFTEN IN SAAS/CLOUD SERVICES ANYMORE, AS IT CAN LEAD TO COMPLEX
AUDITING
MINUTES OR SECONDS

• USED OFTEN WITH TELECOM APPLICATIONS; A COUNT OF TIME ON WHICH TO

METER CHARGING
REVENUE MANAGEMENT
• IDENTIFY THE TERM PERIOD THAT WILL MAKE SENSE FOR THE BUSINESS. WHAT
IS THE TERM? IS IT A 3-YEAR CONTRACT PAID ANNUALLY UP FRONT (I.E.
SALESFORCE MODEL)? IS IT A ONE-YEAR LICENSE PREPAID? IS IT A MONTHLY
POST-PAID? HOW WILL THE SYSTEM DEAL WITH TRUE-UPS? WHAT ABOUT
HANDLING UPGRADES OR MIGRATIONS AGAINST CONTRACTS IN THE PROCESS?
HOW ABOUT CANCELLATIONS? WHAT ABOUT INCENTIVE PROGRAMS OR
REBATES?
SERVICES

• OFTEN, WHEN WE THINK OF SERVICES, WE THINK OF SUPPORT SERVICES–BUT

THERE ARE MANY SERVICES THAT CAN FORM PART OF THE PRODUCT OFFERINGS.
ONBOARDING/INTEGRATION SERVICES
• USUALLY FOR B2B TYPES OF SERVICES, ONBOARDING MAY ALSO BE DESCRIBED AS SET UP,
INSTALLATION, OR PROVISIONING FEE–OFTEN A ONE-TIME “GET IT WORKING” FEE THAT IS USED WHEN
THERE IS PROPRIETARY SYSTEM INTEGRATION REQUIRED. INTEGRATION MAY INCLUDE ELEMENTS
REFERRED TO AS OPERATIONAL SUPPORT SYSTEMS (OSS) AND BUSINESS SUPPORT SYSTEMS (BSS):

• CONNECTING WITH A BILLING SYSTEM FOR FLOW-THROUGH REVENUE MANAGEMENT

• CONNECTING WITH A CRM FOR SUBSCRIPTION MANAGEMENT; SHARING OF CUSTOMER DATA

• CONNECTING WITH AN AUTHENTICATION PROCESS (OATH, RADIUS, DIAMETER, ACTIVE DIRECTORY,

SAML, ETC.) TO ENSURE THAT ONLY AUTHORIZED USERS CAN USE THE SYSTEM, AND TO TRACK USAGE

• APPLICATION CONNECTORS (I.E. CONNECTING TO A NETWORK SERVICE, A POS SERVICE, AN INTERNAL

DATABASE, AN E-COMMERCE ENGINE, A CATALOG, ETC.)
MAINTENANCE SERVICES
• TYPICALLY TIED TO LICENSED SOFTWARE, MAINTENANCE FEES ARE NOT
SUPPORT SERVICES, BUT SIMPLY THE FEES ASSOCIATED WITH THE RIGHT TO
OBTAIN NEW RELEASES, UPGRADES, BUG FIXES. MAINTENANCE SERVICES
WOULD TYPICALLY NOT INCLUDE NEW FEATURE FUNCTIONALITY UNLESS
SPECIFICALLY INCLUDED (LEGAL CONTRACT) IN THE BUSINESS RELATIONSHIP.
IN A SAAS MODEL, MAINTENANCE FEES ARE CONSIDERED PART OF THE
SUBSCRIPTION FEES (AND SHOULD BE ACCOUNTED FOR IN YOUR REVENUE
BREAKDOWNS).
SUPPORT SERVICES
• TYPICALLY TIED TO THE ABILITY TO ACCESS A KNOWLEDGE-BASE, OR WITH
SOMEONE TO GET HELP. SUPPORT SERVICES MAY ALSO BE ASSOCIATED WITH A
SERVICE LEVEL AGREEMENT (SLA) WHICH DEFINES THE TERMS UNDER WHICH
SUPPORT WILL BE PROVIDED, ALONG WITH REMEDIES (ESCALATION, LIABILITY)
FOR PERFORMANCE. IN A SAAS MODEL, MAINTENANCE FEES ARE CONSIDERED
PART OF THE FEES (AND SHOULD BE ACCOUNTED FOR IN THE REVENUE
BREAKDOWNS; AS THOSE DEPARTMENTS WILL WANT TO SHARE THE OVERALL
REVENUES).
CUSTOMER SUCCESS

• AN EMERGING PROFESSIONAL SERVICE–FOR CLOUD SERVICE PROVIDERS,

LEVERAGING A PAID CUSTOMER SUCCESS OFFERING CAN EXTEND THE
CUSTOMER LIFETIME VALUE (CLV); PROVIDE THE ANALYSIS TO CONTINUE TO
DEMONSTRATE VALUE, AND SHOWCASE THE INTEGRITY OF THE COMPANY BY
SHOWING THAT THE SALES COMMITMENTS ARE BEING MET (I.E. ROI ANALYSIS).
PROFESSIONAL SERVICES

• TYPICALLY A TEAM OF DEVELOPERS THAT WOULD BE PAID ON A ONE-TIME BASIS

TO PERFORM SOME SPECIFIC SERVICES. THESE MAY INCLUDE FEATURE
ENHANCEMENTS THAT WOULD BE SPECIFIC TO THAT CUSTOMER, BRANDING,
PRODUCT CUSTOMIZATION, ETC.
2. HOW TO PRICE SOFTWARE
• GETTING TO THE RIGHT PRICE IS ONE OF THE HARDEST CHALLENGES FOR THE
PRODUCT MANAGER. WE WILL BE LOOKING AT VARIOUS ELEMENTS THAT MUST
BE CONSIDERED, IN ORDER TO GET TO A VIABLE PRICE FOR YOUR BUSINESS.

• THERE ARE TWO BASIC INITIAL APPROACHES TO MAKING THE RIGHT DECISIONS.
COST-BASED PRICING CAN BE USED AS A BENCHMARK TO VALIDATE THE LOWEST
PRICE THAT YOU CAN CONSIDER. VALUE-BASED PRICING CAN DRIVE THE BEST
RETURN FOR A PRODUCT INVESTMENT.
COST BASED PRICING

• EVERY COMPANY MEASURES GROSS MARGINS — THE COSTS OF DELIVERING THE

PRODUCT/SERVICE. PRICING MUST BE ESTABLISHED TO MEET OR EXCEED THE
GROSS MARGINS GOALS, BASED ON A BUSINESS PLAN WITH EXPECTED
REVENUES. IDEALLY, THIS SHOULD NOT BE A METHOD OF DETERMINING THE
PRICING THAT IS PRESENTED TO THE MARKET.
VALUE BASED PRICING

• TAKE THE TIME TO DETERMINE VALUE-BASED PRICING, ESPECIALLY IN A SAAS

OPPORTUNITY. IN A VALUE-BASED PRICING MODEL, APPLY QUANTITATIVE
ESTIMATES TO THE DIFFERENTIABLE VALUE OF THE OFFERING AGAINST THE
CURRENT CUSTOMER SITUATION. DOES IT SAVE THEM MONEY? DOES IT MAKE
THEM MONEY? DOES IT REDUCE RISK OR LIABILITY? DOES IT PROVIDE VALUE?
HOW MUCH OVER WHAT PERIOD?
REMEMBER
• THERE ARE MULTIPLE APPROACHES TO COMING TO A NUMBER, BUT AS A
STARTING POINT–DO THE MARKET RESEARCH. FIND OUT WHAT ARE THE
NUMBERS THAT OTHERS ARE USING. DETERMINE IF THEY ARE GETTING
DISCOUNTS, AND IF SO, WHAT IS THE FOUNDATION FOR THE DISCOUNTING?
MAKE SURE TO EXPLORE WHAT ASSOCIATED SERVICES ARE BEING CHARGED
FOR, AND FOR WHAT RATES. DO THE HOMEWORK AS A VALUABLE TOOL IN
DEVELOPING THE CONFIDENCE TO DEFEND PRICING PROPOSALS.
REMEMBER
REMEMBER
• ICH TO CREATE VIABLE ROI MODELS. THIS IS NOT THE PRICE ON THE PRICE LIST.
• WITH A SENSE OF THE AMOUNT THAT THE MARKET WOULD BE WILLING TO PAY,
STEP FORWARD THROUGH THE BUSINESS NEEDS TO COME UP WITH THE
MANUFACTURER STANDARD RETAIL PRICE (MSRP). THE MSRP IS THE VALUE THAT
WOULD GO ON ANY COMMERCIAL PRICE LIST.
IDENTIFY THE END USER POINT
EVALUATE POTENTIAL ROUTES TO MARKET
• ALTHOUGH THE COMPANY MAY HAVE A DIRECT-TO-CUSTOMER PRICING MODEL
TODAY - BE SURE TO CONSIDER THE “WHAT-IF’S” THAT CAN CHANGE THE
BUSINESS MODELS AT ANY POINT IN TIME. DESIGN FOR THE LONG TERM.

• “WHAT IF MY BIG CUSTOMERS WANT TO RESELL THIS TO THEIR CUSTOMERS?”

• “WHAT IF I WANT TO PUT THIS ONTO A MARKETPLACE?”
• “WHAT IF I HAVE TO GIVE AWAY HUGE DISCOUNTS IN ORDER TO MAKE A DEAL?”
CONSIDER THE MODELS OF
• “SELL-TO”–SOMEONE THAT WOULD USE IT FOR THEIR OWN CONSUMPTION (ONLY THEIR
EMPLOYEES CAN USE IT)

• “SELL-WITH”–WORKING WITH A PARTNER WHO MAY WANT COMPENSATION WITH A REFERRAL

FEE/FINDER’S FEE

• “SELL-THROUGH”–ENGAGING AN INDIRECT SALES TEAM, OR SELLING THROUGH A

MARKETPLACE, WHERE FEES ARE PAID TO THAT PARTNER IN THE FORM OF COMMISSIONS,
REVENUE SHARE OR OTHER VARIATIONS THEREOF

• FIND OUT WHAT STANDARD COMPENSATION MODELS ARE FOR CHANNELS AND PARTNERS.
INCORPORATE THESE INTO THE PRICING UP FRONT, SO THAT WHEN THEY COME ALONG THE
COMPANY WON’T FIND ITSELF AT THE BOTTOM OF THE GROSS MARGIN BATTLE.
CONSIDER YOUR DISCOUNTING TIERS
• BE ASSURED THAT THE MODEL WILL NEED VOLUME DISCOUNTS. FIND OUT THE LARGEST
POTENTIAL CUSTOMER, AND CALCULATE THE METER ASSOCIATED WITH THEIR VOLUME AND
ADD 50%. THAT IS THE BIGGEST DISCOUNT LEVEL TO START WITH. FOR SIMPLICITY (AND SKU
MANAGEMENT), LIMIT THE DISCOUNT LEVELS TO ONLY 5 OR 6 LEVELS.

• LOOK AT THE MARKET. DETERMINE WHERE THE CUSTOMERS ARE ON THE VOLUME SCALE IF
THE METER RELATES TO VOLUMES OF USAGE. FOR EXAMPLE, IN SELLING TO A
TELECOMMUNICATIONS SERVICE PROVIDER IN A SPECIFIC GEOGRAPHY–AND THE LARGEST
SERVICE PROVIDER HAD 50M SUBSCRIBERS; (WITH SUBSCRIBER-BASED PRICE) CALCULATE THE
LARGEST DISCOUNT LEVEL FOR 75M (50 X 1.5 = 75M). IF MORE THAN 25% OF THE MARKET ARE
EQUALLY LARGE, A DISCOUNT TABLE MIGHT LOOK SOMETHING LIKE THIS:
HIGH END SCALE FOR DISCOUNTING TIERS

• IT REALLY DEPENDS ON EVALUATING THE TARGET MARKET. IF THIS CUSTOMER

WAS AN ANOMALY–THEN LOOK AT THE OVERALL CUSTOMER BASE AND
DETERMINE WHERE MOST OF THE CUSTOMERS WILL FIT. FOR A CUSTOMER BASE
OF SMALLER CUSTOMERS, IT’S STILL IMPORTANT TO ADDRESS THE LARGER
CUSTOMERS, BUT CONSIDER THAT THE DEMAND FOR DISCOUNTING WILL COME
FROM THE SMALLER CUSTOMERS.
LOW END SCALE FOR DISCOUNTING TIERS

• DESIGN A SCALE TO MEET THE REQUIREMENTS OF THE SPECIFIC MARKET. THIS

WILL REQUIRE A LOT OF DISCUSSIONS WITH THE SALES TEAMS WHO WORK WITH
THESE CUSTOMERS ON A REGULAR BASIS. TRY TO KEEP THE LEVELS SIMPLE.
EXPECT A CHALLENGE WITH PRESSURE TO HAVE LOW TIER RATES FOR
EVERYBODY’S SMALLEST CUSTOMERS. FIND THE SWEET SPOT (THE CUSTOMER
SIZE THAT THE SALES TEAMS SHOULD FOCUS ON) AND IDENTIFY THE
DISCOUNTING APPROPRIATE FOR THAT MARKET SEGMENT.
3. DESIGN AN EFFECTIVE PRICING ARCHITECTURE

• BEFORE PUTTING NUMBERS INTO THE PRICE PLAN, CONSIDER THE SOFTWARE
ARCHITECTURE. FOR SAAS SERVICES, CONSIDER THE MODEL BELOW. IT
REPRESENTS A STRUCTURE THAT PUTS DATA AT THE CORE — THIS MAY BE THE
ONE THING THAT THE COMPANY DOES NOT MARKET. APPS REPRESENT THE
ACTUAL SAAS SERVICES THAT ARE BEING MARKETED–BUT THERE ARE
POTENTIALLY THE PLATFORM ACCESS (APIS), AND THE MICROSERVICES OR DATA
FEEDS THAT BECOME ADDITIONAL REVENUE SOURCES.
IDENTIFY YOUR REVENUE SOURCES
• PRICE ACCORDINGLY. IF THE DESIRE IS TO LEVERAGE THE CORE DATA AND
MICROSERVICES TO CREATE MORE AND MORE SERVICES, THEN STRUCTURE
MOST OF THE REVENUES TO THE PLATFORM.

• DO NOT OVERLOOK THE OVERALL SOLUTION ARCHITECTURE. AS A SAAS

PROVIDER IN A B2B SCENARIO, CONSIDER THE INPUTS AND OUTPUTS IN YOUR
PRICING STRUCTURE.
CONSIDER YOUR ARCHITECTURE

• FOR EXAMPLE, A PRICING BREAKDOWN FOR THE PRICING ANALYSIS MIGHT

LOAD THE REVENUES TOWARDS THE PLATFORM AND DATA FEEDS, LEAVING
ONLY 20% OF THE REVENUES ASSOCIATED WITH THE UI–THE APP:
BREAKING DOWN YOUR PRICING MODEL
• WITH AN ORGANIZED PRICING MODEL, THE ADDITION OF NEW CLOUD SERVICES (SAAS APPS) CAN BE
PRICED IN LINE WITH OTHER SAAS SERVICES. LIKEWISE, BY HAVING THE BREAKDOWN READY, IT IS
EASIER TO CONSIDER MORE CREATIVE PRICING WHEN IT COMES TO APIS AND MICROSERVICES. THIS
MODEL SUPPORTS THE DEMAND THAT MAY COME FROM CUSTOMERS TO “…JUST GIVE ME THE DATA AND
I WILL INCORPORATE INTO MY OWN UI.”

• BE ASSURED THAT AS THE PRODUCT FAMILY GROWS, SALES, SOLUTIONS ENGINEERS AND CUSTOMERS
WILL ALL WANT TO COMPARE NEW SERVICE PRICING WITH THE OLD. HAVING A STRUCTURE FOR PRICING
WILL SIMPLIFY THE POSITION AND RECOMMENDATIONS.

• BEFORE YOU FINALIZE YOUR PRICING GO BACK AND LOOK AT YOUR GROSS MARGINS. PREDICT WHAT
THE IMPACT OF GROWTH WILL BE IN YOUR OPERATING COSTS (ESPECIALLY WITH A SAAS MODEL), AND
ENSURE THAT YOU ARE WITHIN THE CORPORATE FINANCIAL GOALS.
4. PRICING MODEL FLEXIBILITY
• APPROACH THE PRICING STRATEGY WITH A MINDSET THAT REPRESENTS
PROFESSIONALISM IN CREATING LOGICAL, REUSABLE PRICING THAT WILL
SURVIVE THE TEST OF TIME. BE PREPARED TO ADOPT NEW PRICING, NEW PRICING
METERS. THE ABILITY TO ADJUST PRICING QUICKLY WILL GIVE THE COMPANY A
STRATEGIC ADVANTAGE OVER COMPETITORS.

• DESIGN THE SOFTWARE ACCORDINGLY TO CAPTURE AND REPORT AGAINST

LOGICAL METERS THAT SUIT THE CURRENT AND POTENTIAL SERVICE
OFFERINGS.
CONCLUSION

• STRUCTURE AN APPROACH THAT IS SIMPLE TO EXPLAIN. IDENTIFY LOGICAL

METERS FOR THE PRICING STRATEGY THAT CAN BE MEASURED AND AUDITED.
DESIGN THE PLATFORM FOR REPORTING AND AUDITING AND EXPECT PRICING
METERS TO CHANGE. GET IT RIGHT AND THE DEAL DESK WILL BE ABLE TO WORK
MOST SALES OPPORTUNITIES WITHOUT HAVING TO COME BACK AND NEGOTIATE
PRICING FOR EACH EXCEPTION.