Software pricing – what an interesting science! So much goes into strategically positioning your software product, platform and/or service in the particular market you are in from a value perspective. You start by positioning your software business model against competitors – traditional software model vs. SaaS for instance. In our experience, there is still an educational process when many potential clients are attempting to evaluate “apples-to-apples.” As discussed in a previous post, an examination of capital expenditures, software update schedules/fees, internal IT support costs, and platform redundancy need to take place to evaluate the value propositions of the competing systems.
From there, attention turns to functionality and service. This is where pricing can get even trickier. One approach is to bundle a lot of functionality/service into the product platform and to market the value of the whole. The upside to this approach is if a good job is done of educating your audience to the value, pricing can be simplified. The challenge to this approach is when your audience compares the pricing of your comprehensive platform to that of a competitor that prices out individual modules. Things can get very interesting at this point. Ultimately, the responsibility falls on the software vendor to sell its value.
With that said, let us hear your comments and opinions on pricing strategies. If you are a consumer, let us know your preferences on how you like to see software products positioned price wise. If you are a software vendor or just have an opinion, provide your thoughts. We look forward to the dialogue.
Pathagilityis a Software-as-a-Service (SaaS) platform targeted at pathology labs and their healthcare partners (referring physicians, hospitals, etc.)