Written by When thinking about how to price a software product, business owners will always ask: what problem are we solving and what is it worth? In order to figure out how much you should charge for your business solution, it is important to know if it truly has business value and will be a profitable product.
What Data You Need to Price a Software Product
Business Value Consultants (BVC) can help you determine what the business impact of building a software product is and also develop a business case that stakeholders will find compelling. Why is this important to do? There’s nothing more convincing to board members or C-level professionals than quantitative data.
By focusing on the business impact, the sales team can help your prospect’s decision-makers understand what they are getting from the solution and how they can see additional benefits from their current investments. This includes helping them think through scenarios where the software would be used in different use cases and using that information to improve user adoption. All of this will affect the monetary amount at which a product can be sold.
Business Value Consulting includes business management, business strategizing, and business planning which are all key considerations when deciding on pricing a software product. Once the value has been determined it will help quantify what price will make building the software product worth the investment in terms of time, energy, and monetary resources.
BVCs help you determine if a solution is worth building and if it truly has business value so that your stakeholders can easily understand why this software product needs to exist in order to support the strategic direction of an organization at any stage of growth. In addition to that, once a clear use case has been established it will help secure funding from your stakeholders, if necessary.
Scalability
Another consideration for pricing is the scalability of the software product. Scalability can affect ROI significantly. A business value consultant can use scalability to identify short- and long-term profitability points. By:
- Understanding the business need behind utilizing the software product.
- Working with internal team members to determine how customers will be using the software over a long period of time.
- Identifying scalability thresholds that will impact business growth or ROI.
Business Value
Business Value Consulting can help business owners and business stakeholders determine the business value of your software product when building the business case for additional funding to build out internal resources. It also helps prospects understand the business impact of implementing your software product versus doing business without it. BVCs will advise on business planning, including business strategy consulting, so that you have a clear direction and long-term plan in order to deliver maximum value to customers with this new software product now and in the future. They can even offer advice on how different projects interact with each other as well as identify potential future bottlenecks.
Why Use a BVC to Price a Software Product?
Business Value Consulting is an integral part of any new business implementation, as it enables both non-business decision-makers and those who work at the board level to understand how any investment will pay off. This approach ensures that businesses are well placed to maximize their existing investments by making sure they are not duplicating business value, and that the business case is clear for continued business investment.