Saturday, May 8, 2010

Post and share you pricing if you trust your customers

Disclaimer: To not appear hypocritical, my company's pricing is generally free for the customer using a convenience feel model, or runs $99 per month. It's readily available, and a main selling point for our product.

This is the process for purchasing virtually all software:

  1. Please call for pricing or turn over your personal information- name, e-mail address, phone number, dog's name, blood type, and IT budget
  2. Not only will they call you repeatedly and put you on their e-mail list, but you won't get pricing until you sit through a time share presentation, I mean demo with one of their high pressure salesmen
  3. Whatever price they quote? Forget about it. The cost overruns on consulting and professional services will kill whatever ROI you were promised. You didn't fall for it, did you?
If Billy Mays can do it, 
so can you Mr. Software Executive
Now, imagine if you went out to a movie, and had to give the ticket collector your driver's license for admission, and had to sit through the previews and the first act before being told what the ticket price was. Would you EVER see a movie there again? NO. 

What about going out to dinner- whenever you see a menu without prices, you know that it's going to be incredibly expensive. I can never recall a time where I had a meal without posted prices and thought, "WOW, what a bargain."

As individuals, we would never tolerate this type of treatment, yet as vendors or customers, we expect and prepare for this type of treatment, creating a hostile relationship, making for a painful sales and consulting process. The reason products on infomercials sell so well is their hook; just 2 easy payments of $19.95. There is a reason people buy them, it's simple. 

For business and organizations- you have a right to know the price up front of the products you are investigating. You must stop contributing to the feedback loop by purchasing anything from vendors that abuse you, and disrespect you by hiding pricing from you. Buying software should be as easy as buying a stick of chewing gum, or ordering a Slap-Chop from a TV infomercial. 

As vendors, you have a duty to provide pricing and information to your customers and prospects before the first meeting. In fact, I firmly believe that every vendor's pricing should be publicly available on your website. If you value and trust your prospects, then treat them with the same respect that you as an individual expect. 

1 comment:

  1. Nuxeo is an open source ECM vendor - there is no upfront license cost, we have 1 code stream (ie, there is no such thing in our world as a free demo community version and a paid-for 'enterprise' version). We make our money on support and maintenance packages.

    Pricing model and program overview is published on our website here: http://www.nuxeo.com/en/subscription/connect

    Glad to see this topic raised.

    ReplyDelete