Josh Melick – Are You Missing The Third Dimension of Your Sales Plan?
There is no doubt that Josh Melick is one of the finest minds in the business of software development, and he has recently compiled a great blog post stating the area where so many are missing out. In particular Josh talks about a three dimensional price plan on software packages, which provides so many great opportunities for software development companies.
The key to any sales strategy is that it is set up to make as much money as possible, and here is exactly why Josh believes in what he calls, the ‘Third Dimension’.
What is The Third Dimension?
What Josh is describing here is the way that software packages are typically set up for sales, which is often in 3 categories such as bronze, silver and gold packages. Now the first two dimensions which most companies offer are based on the number of users which each package allows, and then the amount of usage which each user can enjoy. The key aspect of what Josh is talking about however, is the length of the contract between the customer and the business. This is the critical third dimension and it is a vital aspect which all sellers should be aware of.
The Ability To Change Pricing
If a software company simply rents out the package to a client, without ever having a natural finish to the contract, then they will have great problems in moving the price. Unfortunately however prices are always going up, and inflation will mean that the price of last year is not the same as this year. If software companies don’t put an end to the contract, they have to contact customers directly and let them know that the price is moving up. This can very easily put customers off and force them to go elsewhere.
Ability to Upsell
A contract renewal gives the business the perfect chance to get in touch with their clients, and this presents them with an opportunity to upsell. If you have someone on the silver package then offering them a deal which may drive them up to the gold package will be very fruitful. This is one of the core points which Josh focuses on, the ability to drive more revenue to the business through a natural conclusion to the contract.
Gaining Trust and Loyalty
In the main customers don’t mind prices rising, and in most cases they expect it to happen. What customers do not like however is wen a price shoots up with little fair warning. If you have duration as your third dimension, Josh explains that it will be so much easier for you to keep the business of that customer and improve the relationship between them and the company. This trust and loyalty ensures that your brand can improve its reputation, as well as improving the amount of money coming into the business.
As you can see, the third dimension is critical for this kind of business.