2. Why do we need pricing?
Evaluation by our potential customers
Business Planning
Scalability
Consistency and Standardization
Setting a value to our offering
3. How is the enterprise sale different?
Much longer decision cycles
(6 months, 1 year, 2 years....)
Evaluation on various parameters
- Functional: comparison on parameters
- Value: May mean different things to different
decision makers
- TCO
- Long term support
- Brand / Organization
Complex decision matrix
4. Parameters for pricing strategy
Will I acquire and service customer at any cost?
For how long, and who will fund this?
What geography will I target and what challenges I
may face there? Are they factored in my pricing?
Am I a new entrant in an established market or is
my product a new concept with no competition?
Will I be ready to educate the market?
What are the must-haves and good-to-haves and
can I discount on the must-haves to gain
customers
If I remove my R&D, can I have a +ve YoY EBIDTA
5. Take home thought
If you sell a $10 bill for $8 and are trying to
make it work through volumes
you know where your business is headed
...............Warren Buffet