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Kelly Goetsch

COO @ Pipe17

I've seen various websites pop up claiming to offer the prices that other users pay for enterprise SaaS software. https://www.vendr.com is a new one that's making the rounds. The price an enterprise pays for high AOV SaaS, like a commerce platform, is next to impossible to reverse engineer. Enterprise SaaS pricing depends on some combination of: - How much do you use the product? A retailer selling $25k watches and $2 pencils may have the same GMV at the end of the year but dramatically different product usage patterns. We have internal gross margin targets and try to peg our pricing to that - How successful do we think you'll be? We as a vendor don't want failed implementations out there. They're expensive for us to fix and cause reputational damage. If we think you're going to ignore our guidance, we may charge you a premium. We want to partner with our customers: https://lnkd.in/guFDHQtC - Will you do referencing for us? If we as a vendor can have you do a mainstage keynote or speak to other prospects on our behalf, that's worth a lot to us - What's the cross-sell and up-sell potential? Can we make you so successful that you'll end up using us for other use cases, geos, etc? - Can we kneecap a competitor? Starving a specific competitor in a geo or for a specific use case is valuable for us on occasion - Do you help us as a vendor enter a new geo? Having a flagship customer in a new country or geo is valuable - Can you help us as a vendor enter a new vertical? Having a flagship customer in healthcare, or government, for example is worth a discount - Do you have a reputation for not paying bills? The CFO of a certain midwestern retailer was famous for having a sign on his office door titled "25 reasons not to pay a vendor invoice." No thanks - Are you at risk of bankruptcy, PE takeover, or some other big event that could impact your strategy and/or your ability to pay? For smaller ticket SaaS, like an Office or Slack subscription, different rules apply. But for something as consequential as a commerce platform - the above considerations can definitely impact the price you pay.

Aditi Raghav

VP of Marketing at Lynkread | LinkedIn Lead Generation | B2B Authority & Reputation Building | Strategic Messaging | Driving Meaningful Engagement | Boosted Client Visibility by 45% | 20% Increase in Qualified Leads

3mo

Great insights! Another factor to consider is the strategic alignment between the vendor and the customer. If the customer's long-term vision aligns closely with the vendor's product roadmap, it can lead to more favorable pricing. Additionally, the vendor's ability to offer customized solutions or integrations can be a significant differentiator, adding value beyond the standard offering. Lastly, the overall market conditions and competitive landscape at the time of negotiation can also play a crucial role in determining the final price.

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