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Reports >
Support Pricing & Negotiating Strategies
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Support Pricing & Negotiating Strategies
Publication date: 7/03
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Executive summary
Over the lifetime of product ownership, support and maintenance contracts
often generate more revenue than the original product license. Yet software
companies rarely pay enough attention to the details of contract pricing
and terms, sometimes leaving money on the table or setting themselves up
for later disputes with customers.
This report, authored by veteran support consultant Françoise Tourniaire,
takes an in-depth look at ten key areas of the contract pricing and
negotiation process. Tourniaire offers practical advice on such topics as
these:
- How to design support plans that are easier to sell
- How to set the right initial contract price
- How to implement price increases
- How to support the sales force
- How to negotiate discounts and non-standard deals
- How to set reasonable minimum discounts
- How to give discounts that preserve long-term revenue
- How to maximize the renewal revenue stream
- and more...
"Support is—or at least can be—an annuity," says Tourniaire. "So
whenever you are working with support pricing it's important to get it
right from the start, and to always consider the long term when making
concessions."
Copies of the survey are free to ASP members in the
members-only area.
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