Software Pricing Strategy

The EVP at a PE firm needed targeted pricing support for a middleware developer it had acquired. Historically, the company’s revenue came from one large, upfront licensing fee, plus smaller annual maintenance fees. As customers began to migrate to cloud-based SaaS solutions, the EVP wondered if a new pricing strategy might serve it better in the future.

Business Talent Group delivered a senior pricing and technology expert who’d previously served as a Principal at Booz and held C-Suite roles at a healthcare software developer. In a compact, 10-week engagement, this consultant worked with internal P&L and product strategy experts to complete a pricing segmentation based on customer, sales, and competitive research. Then, he developed simplified pricing models for each segment that would streamline buying decisions while maximizing the company’s returns.

 

About the Author

Leah Hoffmann

Leah Hoffmann is BTG's Content Strategist. A former journalist, Leah worked for Forbes.com and The Economist before joining BTG. She is passionate about clear thinking, sharp writing, and strong points of view.

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