It's no secret that pricing models have become far more complex in recent years. The Internet and instantaneous access to pricing data has created a more dynamic environment and forced vendors-including channel pros-to use new methods and strategies. Today, slapping a price tag on a product or project isn't necessarily a viable or profitable way to run a business. It's essential to rely on new and different models to optimize pricing and generate value for clients.
As a result, a growing number of channel pros are steering away from unit pricing, an approach that can erode margins and transform them into a commodity provider. Many are adopting subscription-based pricing-the same general approach that Dropbox, Salesforce, Evernote, and a slew of other cloud-based providers now use. Some are also turning to a hybrid approach that takes a more holistic view of products, services, and support. In some cases, bundling products and services makes it possible to deliver greater value to clients.
Regardless of the approach a channel firm takes, one thing is certain: It's essential to use the right metrics and analysis to determine optimal pricing and package products and services in a dollars-and-sense way. Whether an organization turns to a spreadsheet or relies on software to view pricing models and understand how they might play out in the real world, the desired result is a pricing strategy that works in today's environment. Here are five ways to maximize your success...and profits: