Services Pricing

When pricing new B2B offerings – products, services or solutions – you essentially have five tools at your disposal. Choose the tool or tools that best meet your needs.

At any point in time, a service marketer somewhere is in the thick of raising service prices – an unenviable task at most technology companies.  If only Scott Adam’s could listen to the internal discussions that typically take place, Dilbert could easily double or tripple its readership. Opinions run the gamut.  Some advocate unrealistic price increases, as in “let’s double our prices now.” While others express fear of mass customer exodus for simply maintaining price increases in line with inflation.

At a recent industry reception, while a group of us were talking, the conversation somehow meandered to competitive service pricing. Someone asked: “Can you get good competitive research on service pricing?” “Sure,” I replied, “but it won’t be of much value to you anyway and you can probably find a better use for your money.”

IT service organizations have a unique ability to provide differing levels of access to services as a way to segment greater or less price sensitive customers.

This approach accomplishes several things.

First, it permits a better “match” of the service package to the needs of the customer. Some customers just don’t need 24 hour access to support. This may complicate the sales job but in these tough economic times it forces sales people to understand the real needs of customers.