Pricing Schemes
As we all know support pricing is as much art as science, but pricing schemes are fairly limited. You can price: by user: you have a choice here since you can price by named user (anyone liable to use the …
As we all know support pricing is as much art as science, but pricing schemes are fairly limited. You can price: by user: you have a choice here since you can price by named user (anyone liable to use the …
(with thanks to JB Wood) maintenance $ = # contracts * average contract size which means: 1. The renewals rate is critical. And especially with smaller customer bases the attach rate (% new sales that include support) is also important. …
Quick, which is cheaper? Premium Support priced at 100k PLUS the 18% (of license) Standard Support or Premium Support priced at 21% of license? If you’re like most people, that 100k sounds big, doesn’t it, bigger than the measly 3%. …
We’ve talked about fixed pricing before on this blog (here and here), mostly as an alternative to the common practice of pricing support as a percentage of the base license fee, a standard approach in the high end. Although I’m …
Most support offerings are priced using either a percentage of the license price or fixed pricing. But there’s no law that says you cannot mix the two. A typical example would be a high-end offering that includes account management, let’s …
If you thought it was hard to sell support a year ago, you must be feeling a little down today… Here are some ideas for pricing and selling support in a downturn. Give the customers choices. Customers are human beings: …
Many vendors use percentage pricing for support. For instance, basic support may be priced at 18% of the license price. Would it be wrong to use a fixed price instead? Fixed prices are just fine. They are very simple to …
When deciding whether to price support offerings with a flat fee or via a percentage of the license price, keep the following in mind: – A flat fee is well-suited to a set product price. On the other hand, if the …
The FT Word The FT Word is a free monthly newsletter with support management tips. To subscribe, send us email with your email address. The subscription list is absolutely confidential; we never sell, rent, or give information about our subscribers. …
When it comes to support pricing, yes! Complicated pricing antagonizes customers because they feel it must be hiding predatory practices; breeds confusion with sales reps that easily leads to “creative” pricing; and opens up avenues for customers to press for …