The Ultimate Guide to Positioning
Product Growth Podcast
Understanding Software Pricing in Different Business Contexts
Software pricing varies significantly based on the business context and the specific needs of small, medium businesses versus large enterprises. For large enterprises, costs associated with software extend beyond the product itself to include implementation, change management, onboarding, and ongoing support, making higher prices justifiable. However, many companies, particularly those developing efficiency or analytics software, often struggle to align their pricing with the perceived value. While critical infrastructure software can command higher prices due to its essential nature, most analytics-based tools face limitations in their pricing strategy. These analytics tools provide insights rather than direct business changes, making a price point of $50 per user more realistic than excessive annual fees which are often difficult to justify in light of the value they deliver.
Remember Everything You Learn from Podcasts
