Software Pricing Strategy – Learn From Other Industries | Software Pricing Partners

An ad for a 24 pages/minute laser printer priced at $55 caught my eye the other day. It made me think about how many other industries can give us powerful insights when it comes to software pricing strategies.

How could any printer manufacturer make money on a retail price of $55 when the factory price might be $25 or so? The answer is in the laser cartridges of course.

For the manufacturer to meet their financial goals, CLTV (Customer Lifetime Value) must be greater than the cost of product delivery and customer acquisition — just like a SaaS business. But the laser printer business is like a SaaS software business in another way: the printer is the one time up-front fee and the cartridges are the recurring revenue stream.

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Software Pricing Strategy – Learn From Other Industries.