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Ask HN: “Contact Us” Pricing

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Re: Ask HN: “Contact Us” Pricing

#151

Earlier quoted context omitted.

If a customer is paying you late because they think you won't/can't do anything about it, it seems the same disregard could apply to their payment of late fees.

Sometimes, they'll go as far as stiffing your payment just because.. what are you going to due, sue a Global 100 entity? It's absurd, that's why I like working with smaller companies.

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Re: Ask HN: “Contact Us” Pricing

#153

As you already know, this is typical for "enterprise" software due to the idea that potential customers will immediately click away if the price seems too high, so you need to let your customer know what value is in your software before they immediately walk away. One take-away from this is the old "if you have to ask, you can't afford it", and another is that they're automatically filtering out lower-value or price-…

>However, an obvious counterpoint is that Atlassian built a multi-billion-dollar business around up-front pricing, and even seem to still offer that up-front pricing today. Not quite .. their "Enterprise" package only has a "Contact us" option (no pricing details).

I'm fine with having a "Contact Is" at the top end of a pricing table. At that point you've probably got some pretty unique requirements and there's likely some level of customisation involved.

Re: Ask HN: “Contact Us” Pricing

#154
post #68

Earlier quoted context omitted.

Sometimes I ask sales people of these companies, "why is it that SpaceX can give me a price for launching something into space, with detailed manuals about how to prepare all my interfaces, but you have to take 2 weeks to think about how much to charge me?" Yes I know the comparison isn't quite right, but sometimes you just have to put some pressure on bro salespeople coming in, making shit up, and trying to test how…

You cannot tell SpaceX to move up their launch date for you. You cannot send a payload that exceeds the weight or size limits. You cannot tell them that you don't like the color of the rocket since it doesn't fit with your brand. As far as sales go, it's easy for SpaceX to publish their prices because it's the most rigid type of service possible. Enterprise SaaS is the exact opposite. The product that is listed on th…

SpaceX has years-long development timelines, huge capital and personnel costs, and huge liabilities/risks. Yet they can give you predictable pricing and understandable margins and cost models. Sure they are rigid in their requirements, but that pales in comparison to / is far from them using it as a pricing factor in comparison with the requirements asked of a sales guy selling a software team's services.

At the heart of it, the ridiculous pricing practices of "contact us" pricing are to test what a customer is willing to pay.

Have a look at this ML-favorite lately. $50/month for a general user turns into something you will not believe for corporate users. Totally testing what they can get away with. https://wandb.ai/site/pricing

Re: Ask HN: “Contact Us” Pricing

#155

As you already know, this is typical for "enterprise" software due to the idea that potential customers will immediately click away if the price seems too high, so you need to let your customer know what value is in your software before they immediately walk away. One take-away from this is the old "if you have to ask, you can't afford it", and another is that they're automatically filtering out lower-value or price-…

Don't forget that "contact us" pricing also gives vendor managers something to do, and the ability to brag about whatever discount they negotiate (and it hardly matters if everyone gets that "discount"). It's also the case that if something goes wrong the first question is often "do we have a contact at X?" and if you've gone through the "contact us" pricing dance, the answer is probably "yes", or at least "maybe', w…

Last time I had to deal with the contact at x due to something going wrong they were worse than useless. They broke the product with an update and when we asked to roll it back they organised a full sales team which was presented to us as a call with engineering, except they were trying to sell us on another product to solve a different problem and just ignored all questions about the product we had bought.

Re: Ask HN: “Contact Us” Pricing

#157
I avoid companies that won't publish their prices because it signals two things:

1. If you're not going to spend time jumping OUR hoopes to talk with us, you're not that important, we don't care about you, little fish.

2. We won't quote our price because we want human-human time with you to maximize our quote based on how dumb you are. (how hard can we scam you out of money).

There might be a place in the world for a site where existing customers can anonymously report how much they've been quoted for named services at named companies. It'd be very convenient.

Re: Ask HN: “Contact Us” Pricing

#158
I bought several "contact us" style software. Usually their licensing is hard to calculate and you will need to buy more licenses upfront from what you think you need just in case.

Worst experience was a reporting tool for telecoms that was licensed by port. Devices used to have 4-8 ports but the year before suddenly it was feasible to ship 32-port devices to customers. This made the tool prohibitive.

My best experience was when a sales rep just called and told me the pricing range for their product: 5x our budget, without counting cost of migration. It was the most productive sales call I ever had.

Re: Ask HN: “Contact Us” Pricing

#159
post #61

Earlier quoted context omitted.

Whether or not your company has a procurement department should always be part of the equation when pricing enterprise deals. (Funding is an indicator of whether your company has one) Smaller companies without procurement departments are quicker and faster to contract with and they pay on time. Bigger companies with procurement departments request last minute contract redlines and never pay on time (always at least 2…

Most companies pay very quickly if you offer 1% Net 10 or 2% Net 10 terms. Paying within 10 days to get a 2% discount is pretty money-efficient from their standpoint.

I also recommend this. It seems that some accounts departments are authorised to play absurd games with long delays but they aren't authorised to cost the company more money. They will complain about late fees but everyone likes a discount, right?

Re: Ask HN: “Contact Us” Pricing

#160

As you already know, this is typical for "enterprise" software due to the idea that potential customers will immediately click away if the price seems too high, so you need to let your customer know what value is in your software before they immediately walk away. One take-away from this is the old "if you have to ask, you can't afford it", and another is that they're automatically filtering out lower-value or price-…

FWIW there are SaaS products in my field with "contact us" pricing that start at 1-1.5k per month.

But yah, they for sure aren't going to be $49 or whatever a month.

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