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Estd 4.22.2023
Based on our book, Price to Scale, ROI and savings calculations are indeed often part of the conversation—framed as “using our product saves X hours, which translates to $Y saved per month.” However, the book emphasizes a key distinction:
• While many companies, in conversation, mention impressive ROI numbers (such as aiming for 5x to 10x ROI), few actually use these calculations as the primary basis for setting the price.
• There’s a real challenge in measuring ROI accurately due to intangible benefits and “soft” costs, which means that overly optimistic analyses can lead to skepticism if the numbers aren’t fully realized in practice.
The book explains that while an ROI disclaimer on your pricing page can be useful as an illustrative tool to help prospects visualize value, it shouldn’t be the sole or primary driver in your pricing strategy. Instead, pricing should focus on capturing value for both the business and the customer, ensuring that the customer still gains a 4x to 10x benefit relative to the investment, even after accounting for the price.
In practice, sharing simplified ROI or savings information can help sales teams articulate the value proposition more effectively. But it’s important to avoid over-reliance on these figures, as they can invite scrutiny if the actual results don’t match the projections.
In summary, while adding an ROI or savings calculation to the pricing page may help in convincing customers by making the benefits more tangible, the book advises using ROI as one of several tools in your pricing justification—not as a standalone method for price setting.