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Complex Pricing = Lower Sales

March 22, 2011 6:32:16.457

Here's an idea I've been hammering on for years - complicated pricing kills sales:

One thing many companies — in any industry — can learn from Apple is the importance of simple pricing. If you make it easy for people to understand how much they’re paying, and what they’re paying for, it is more likely that they’ll buy it. Or perhaps this is driven more by the converse: if people are confused about how much they have to pay, they’re more likely not to.

That's obvious, and yet so many companies miss it. You'll often hear that "the Enterprise is different", but remember - purchasing agents are just people too, and if they can't follow your pricing they'll get every bit as jumpy as anyone else.

Also, clear pricing doesn't have to mean low pricing. Apple certainly isn't found in the bargain aisle at the Dollar store...

Update: Along the same lines as this post, I got an email this morning that had this in it:

I’m shocked at how difficult it is to buy a copy of VisualWorks! I couldn’t find a link on the site: “Buy this software” I ended up leaving a generic message.

Make it hard to buy your software, and you'll needlessly limit the size of your user base.

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posted by James Robertson

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