How We Can Help
Technology company revenues, margins and profits are under duress. As of this writing in 2015, revenues on average are down 7% from a year earlier, with profits down over 1%. Though hardware companies are the hardest hit, neither software or services are immune to the trend. There are many culprits, but one is an industry being pushed by customers to “as a service” business models. This may be infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS), or absolutely anything as a service (XaaS) that is delivered via the cloud. A common characteristic, however, is low profitability.
In this environment, tech leaders are looking for methods and tools that they can apply to reverse the trend, and pricing strategy for technology products is at the top of the list. In our experience, tech companies may be leaving as much as 10% of revenues on the table due to ineffective pricing. And that’s just the top line. For the typical tech company, with profits of 14%, a 1% price rise translates into as much as a 7% profit rise. Stronger value and pricing capabilities directly improves profitability. The end result is not only growth, but more profitable growth.
With proven results at some of the world’s leading tech companies, Value and Pricing Partners has identified 9 paths to more profitable growth. That’s our exclusive “9 Block Approach” to delivering business results. Our strategic pricing services and resources can be an instrumental part of your overall profitability strategy.