How to Price Software – Part 2 | Software Pricing

To avoid confusion about list vs. net price, we use the term “Pricing Model”. This allows us to deal with the setting of list prices separate from creating various types of discount incentives. In other words, a Pricing Model has both the amounts you charge and the incentives you create to encourage prospects to buy your solutions.

In addition to the tactical activities that establish list prices and discounts, the Pricing Model also includes the rationale behind how prices scale with volume, why promotional discounts are offered, and how to implement and administer prices and discounts.

Beyond the tactical, a Pricing Model also includes how list prices and discounts are communicated and presented to prospects – from initial consideration to purchase through upgrades and purchase of additional offers.

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How to Price Software – Part 2.