Curious for any return on experience / tips you’d have on the below pricing negotiation
We have a long-running B2B SaaS contract with one of our customers, where our service runs on a dedicated Virtual Private Cloud ‘VPC’ specifically for that customer.
Lately our customer got acquired into a larger group of similarly looking companies. One of those companies reached out to us for a similar contract but deployed on-premise ánd at a lower price point (as one of our competitors offered at that price point).
We agreed to deploy on-premise at that lower price point, in view of a larger cooperation within the larger group. Multiple companies within that group are potential customers.
Going forward - the larger group might require to deploy all of our services (so also our initial Virtual Private Cloud ‘VPC’ deployment at a higher price point) on-premise.
What levers would you suggest to keep our pricing level within the group at least at the same level?
@Thomas_De_Clerck : I’ve done a ton of these types of pricing frameworks across deployments, usually splitting into:
OnPrem
Private Cloud
Multi-tenant cloud
Each deployment have different dynamics (e.g. you can charge for cloud costs in Multi Tenant, but not onprem. But you can charge way higher support costs for onprem. Etc.), so look into that.
However: what you seem to have here is a ‘whale problem’ = not having a pricing structure that is ready to price XL accounts and promote cross-account expansion.
So flip your thinking
From : “We have to keep charging this current way across this 10x size account”
To: “How would an ideal purchase structure, product structure and pricing structure work to really monetize and expand an account 10x the size?”
Taking your current pricing into this enterprise territory is like trying to win the Nascar on a unicycle.
