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.
- Pricing Transparency May Be Beneficial for Helping Contain Costs in eDiscovery
- Can Tigers Change Their Stripes? The SaaS Memo Most ERP Vendors Missed