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Estd 4.22.2023
Based on our saas pricing book, Price to Scale, there are two key perspectives you can use when pricing professional services and consulting alongside enterprise software licenses:
- Modular (Add-On) Approach
- Treat professional services (such as implementation, consulting, training, or customization) as distinct value add-ons rather than merely bundling them into the overall software price.
- This method allows you to attribute a specific value to each service component and adjust pricing based on the level of effort and impact. By doing so, you can ensure that both the base software and the professional services capture their individual worth—avoiding the risk of “leaving money on the table” or even dissuading enterprise adoption.
- It aligns well with the enterprise sales cycle where deals are more complex and each client’s needs (and price sensitivities) vary.
- Bundled (Good-Better-Best) Packaging
- Alternatively, you might consider integrating software licenses with varying levels of services into a tiered offering. For example, a “Good-Better-Best” model can bundle a base software package with a basic level of support, while higher tiers include comprehensive consulting and implementation services.
- This approach simplifies the offering and helps segment enterprise customers who seek one-stop solutions versus those who prefer to select and pay for only specific services.
- The choice to bundle should always be weighed against the go-to-market (GTM) strategy and specific customer segments you plan to target.
Key Takeaways:
- Assess and quantify the value of your professional services as standalone or add-on items to ensure clear pricing differences.
- Align your pricing model with your overall GTM strategy and the buying behaviors of enterprise customers; some segments might prefer modular pricing while others value integrated, tiered packages.
- Finally, keep your quoting process flexible enough to allow for custom negotiation during sales conversations, particularly when dealing with high-stakes enterprise deals.
By clearly separating (or thoughtfully bundling) the pricing for software and professional services, you can optimize pricing for both value capture and successful sales engagements. For more detailed guidance, refer to the sections in Price to Scale where we discuss modular pricing (around pages 29 and 59) and experience-based observations on pricing strategy for enterprise sales.