Pricing and billing play an important role in a successful managed print program, but when they occur in the sales cycle and who’s responsible for them are very different. Our comprehensive guide to pricing and billing for managed print services (MPS) clarifies these differences and covers everything from creating your MPS pricing strategy to choosing the right billing model for your MPS program.
The traditional B2B sales and marketing funnel is pretty straightforward. Marketing delivers marketing qualified leads (MQLs) to the Sales team. Sales then qualifies these leads and converts them to sales qualified leads (SQLs). In some cases, a lead will stay with Marketing to be nurtured if they are not ready to buy. But this model doesn’t address some of the biggest changes to the B2B sales landscape, specifically the rise in popularity of freemium models and what’s known as a product qualified lead (PQL). In this post we’ll be looking at how salespeople can use their pricing and their product to organize their funnel and move leads further through the buyer’s journey.
Whether you’re B2B or B2C, putting your pricing online is a controversial decision at best and a costly one at worst, or so we’re led to believe. When it comes to ecommerce and marketplaces like Amazon, online pricing is a given. The same goes for commodity-driven markets where transparent pricing is a key sales driver, but what about B2B services and products?
What is COGS?
Your cost of goods sold (COGS) is the actual cost to physically produce your company’s product or service. How you calculate this number will vary depending on your solution and whether you consider it a product or service. The features and functionality of your solution will also impact the individual expenses that you include in your COGS calculation. For example, if you remanufacture toner cartridges, the costs for raw materials used in the production process, facilities and labour should all be considered key components of your COGS.
As part of our series on MPS pricing and billing models, we’ve looked at some important considerations for pricing SaaS and enterprise solutions as well as the essential elements of a pricing strategy. There is a lot of useful information in these blog posts to illustrate the significant impact pricing can have on your overall business strategy and the important role it plays in the success of your MPS program, but how do you go about finding the pricing strategy that enables you to achieve your strategic objectives?
A successful pricing strategy will determine the price point at which you can maximize profits on your products and services, but it can also be used to increase market share within an existing market or break into a new market. So what goes into creating an effective strategy? We have already established who is responsible for pricing and identified some key considerations for pricing enterprise and SaaS solutions. In this post we will look at what should be included in your strategy.
The advent of cloud computing has made subscription-based solutions more widely available and a popular alternative to on premise enterprise solutions. Not only do subscription-based solutions provide customers with greater flexibility in terms of scaling their business, they are often more cost-effective for small and medium-sized businesses (SMBs). Instead of spending thousands on a dedicated server and the necessary infrastructure, customers can ‘pay for what they use’ with subscription-based solutions hosted in the cloud.