Software Pricing Strategy

The EVP at a PE firm needed targeted pricing support for a middleware developer it had acquired. Historically, the company’s revenue came from one large, upfront licensing fee, plus smaller annual maintenance fees. As customers began to migrate to cloud-based SaaS solutions, the EVP wondered if a new pricing strategy might serve it better in the future.

Business Talent Group delivered a senior pricing and technology expert who’d previously served as a Principal at Booz and held C-Suite roles at a healthcare software developer. In a compact, 10-week engagement, this consultant worked with internal P&L and product strategy experts to complete a pricing segmentation based on customer, sales, and competitive research. Then, he developed simplified pricing models for each segment that would streamline buying decisions while maximizing the company’s returns.