What is the future of SMSF software pricing? | BGL Blog

At my CEO Institute meeting this morning, one of the topics on the agenda was product pricing. It was very appropriate as recently one of the software vendors in our industry announced a 30% price reduction. When I saw this I asked myself, why? Why would someone devalue their product by reducing their price by 30% or in fact, even offer a discount at all (as others do)?

BGL has always believed the price of the product should be based on the value the product provides. That is the way we have always priced our products. We have been accused in the past by some of our competitors for being too cheap and accused by others of being too expensive.

The other rule we have is that we rarely (if ever) discount our products. We do offer incentives for clients to invest at certain times during the year (as do many organisations) and we do offer volume pricing, but we avoid discounts per se. Discounts in my view simply devalue a product.

BGL has used pricing over the past couple of years to encourage clients to move from our desktop to web products. We do not apologise for this. We have increased the price of our desktop products in line with cost increases and to support development of our web products, but have not increased the price of our web products. BGL does not intend to increase the price of our web SMSF product because we think it is fairly priced and provides exceptional value for our clients.

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What is the future of SMSF software pricing? | BGL Blog.