Time To Come Clean? ‘Call for Pricing’ Trending in SaaS

Price transparency is going out of fashion among SaaS vendors as many say ‘Call for pricing’. Vijay Sundaram explains why that’s a bad thing. Put simply, customers need more information, not less, about business software in order to make informed decisions.

Extract from an article by Vijay Sundaram

SaaS vendors are less transparent about their pricing today than they were just a few years ago. Why?

Given that SaaS companies don’t carry the same implementation and maintenance costs as old-school ERPs, pricing transparency should be a way for these businesses to stand out and compete in an already crowded field.

Curiously, the data does not bear this out. Increasingly, businesses are relying on a “call for pricing” model, even at the SMB level – a trend that doesn’t appear to be born of necessity but rather of a changing attitude in the tech industry.

Put simply, customers need more information, not less, about business software in order to make informed decisions. Price is often the first thing a customer will look at when weighing their software options. Customers who see plans listed as “call for pricing” may think, “If I have to ask, I probably can’t afford it.” This isn’t a model for customer growth, and it is concerning that the industry is trending away from pricing transparency.

Additional Reading

Source: ComplexDiscovery

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