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freedomben 4 months ago

I'm a CTO who makes purchasing decisions. There are numerous products I likely would have purchased, but I either find a substitute or just go without because I won't play the stupid "let's get on a call" game.

If your website doesn't give me enough information to:

1. Know enough about your product to know that it will (generally speaking) meet my needs/requirements.

2. Know that the pricing is within the ballpark of reasonable given what your product does.

Then I will move on (unless I'm really desparate, which I assure you is rarely the case). I've rolled-my-own solution more than once as well when there were no other good competitors.

That's not to say that calls never work or don't have a place, because they definitely do. The key to using the call successfully (with me at least) is to use the call to get into true details about my needs, after I know that you're at least in the ballpark. Additionally, the call should be done efficiently. We don't need a 15 minute introduction and overview about you. We don't need a bunch of small talk about weather or sports. 2 minutes of that is ok, or when waiting for additional people to join the call, but beyond that I have things to do.

I know what my needs are. I understand you need some context on my company and needs in order to push useful information forward, and I also understand that many potential customers will not take the lead in asking questions and providing that context, but the sooner you take the temperature and adjust, the better. Also, you can get pretty far as a salesperson if you just spend 5 minutes looking at our website before the call! Then you don't have to ask basic questions about what we do. If you're willing to invest in the time to get on a call, then it's worth a few minutes of time before-hand to look at our website.

freedomben 4 months ago | parent | next [-]

Oh I might add another huge thing: Have a way to justify/explain your pricing and how you came to that number. When you have to "learn about my company" in order to give me pricing info, I know you're just making the price up based on what you think I can pay. That's going to backfire on you because after you send me pricing, I'm going to ask you how you arrived at those numbers. Is it by vCPU? by vRAM? by number of instances? by number of API calls per month? by number of employees? by number of "seats"? If you don't have some objective way of determining the price you want to charge me, you're going to feel really stupid and embarrassed when I drill into the details.

jhallenworld 4 months ago | parent | next [-]

>you're just making the price up based on what you think I can pay

It should be based on the email address used. If, for example, your email ends in @google.com, you get charged more. If it ends in @aol.com, then they take pity on you and you get a discount.

My co-worker's grandfather owned a TV repair business. The price was entirely based on the appearance of the person and had nothing to do with the actual problem. This way rich people subsidize the repairs of poor people.

ozim 4 months ago | parent | prev | next [-]

You know it might be also priced on “this guy feels like a pain to work with after the way he asks questions, let’s put the price up”. There is no way to objectively explain that without having person offended - so I am going to put a price I think will cover me dealing with BS questions or attitude of the customer and if he walks it is still a good deal for me.

We might think that companies need every single sale - well no sometimes you want to fire a customer or not take one on.

ascorbic 4 months ago | parent | prev | next [-]

>just making the price up based on what you think I can pay

It's called supply and demand, and it's the way things have been priced since the dawn of commerce. The only time the price is based on cost is when the market is competitive enough to drive that price down, and the cost acts as the floor. Even then, if you can get your costs below those of your competitors then it's your competitors cost that can act as the floor.

The way things should be priced is based on the value it gives you. If your service makes me or saves me $100 of value per month, I should be prepared to pay up to a little below $100 for it.

lotsofpulp 4 months ago | parent | prev | next [-]

>When you have to "learn about my company" in order to give me pricing info, I know you're just making the price up based on what you think I can pay.

That is how 99% of sellers do business. The upper end of the price range is what the buyer can pay, the lower end is what their competitors are asking for. Some sellers are lucky to have few competitors, so they can waste more of the buyers' time trying to narrow down exactly how much they can or are willing to pay.

JoshTko 4 months ago | parent | prev | next [-]

I'm confused by this, why would sales team know in detail the vRAM contribution to sales price, and how is it relevant to your purchase decision? I've never heard of enterprise/SAAS pricing to be based primarily using cost plus pricing.

lowkey_ 4 months ago | parent | prev | next [-]

I've always agreed with this take but now as a B2B founder doing sales, I think it can honestly be interpreted a lot more charitably.

I get on an initial discovery call to learn a few things, like:

* How much will it cost us to support you based on what you're using our platform for?

* How expensive is this problem for you today?

* From there, how much money could we save you?

My goal is to ensure a (very) positive ROI for the lead, and that we can service them profitably. That's how I put pricing together. It seems pretty reasonable.

Our platform is also rather extensible, and I want to make sure that they'll understand how to use it and what it's for, instead of becoming an unhappy customer or wasting their own time.

TZubiri 4 months ago | parent | prev | next [-]

I was just thinking about this today. Basically replacing my price list or prefacing it with something like : "We've designed the pricing and services to be affordable by bootstrapped startups with just one investing founder. Additionally prices are comparable to a FT SWE on a quarterly basis."

Because the truth is that the contracts are almost always different, so while price tables are good to get an idea, words are just better at conveying the ballpark, and they lack the illusion of price rigidness.

risyachka 4 months ago | parent | prev | next [-]

The price is set by the market. It never was and never will relate to the seats/resources used/etc.

j45 4 months ago | parent | prev | next [-]

Love it, I'm the same.

Break the solution selling sales cycle.

Non-technical sales people selling software need a better standard to deliver on the promises of their software.

We want partners, not vendors. This can be communicated long before reaching out.

yabbs 4 months ago | parent | prev | next [-]

You're c-suite and you negotiate based on time and materials vs ROI?

exe34 4 months ago | parent | prev [-]

is that how you present the price to your own customers? or do you operate on value based pricing?

nu11ptr 4 months ago | parent | prev | next [-]

For #2, someone once said there are two pricing models (was it Joel Spolsky? Don't recall..):

$0 - $999 - direct sale/download, pricing on website

$50,000+ - full sales team, no pricing on website

And essentially not much in between... this has perhaps changed a bit with SaaS, but this is still semi true.

egorfine 4 months ago | parent | next [-]

Oh yes it was Joel Spolsky: https://www.joelonsoftware.com/2005/11/18/price-as-signal/

zamderax 4 months ago | parent | prev [-]

I don’t think this is true anymore. Firebase, auth0, AWS, figma and many more SaaS obliterated this dichotomy

dimatura 4 months ago | parent | prev | next [-]

Agreed. As someone in a place to make purchasing decisions, if I can just sign up and try something without having to "jump on a call" and sit through a demo, I'm more likely to do so. I'm more willing to meet afterwards if I like what I see.

As it happens, a while back I did exactly this for a company after reading a post about their launch on HN. In a later conversation with their CEO, I found out we were their first customer!

eastbound 4 months ago | parent [-]

You can go to the SpaceX website and see the price of rockets. You can literally enter your credit card numbers to pay for it.

griomnib 4 months ago | parent | prev | next [-]

This sort of cuts both ways, I’m on the small business selling side.

Sometimes somebody will want a call, I’ll do my dance, tell them the price, then they try to nickel and dime to get a lower price - which isn’t on offer. That blows a lot of my time.

On the other hand, the software I sell solves some novel problems at scale and is designed to be extensible - so in cases where somebody wants to build on the foundation I’ve built I really do need a call to figure out if there’s a missing feature or similar I’d need to build out, or if there’s some implementation detail that’s highly specialized to a given situation.

By and large my evolving strategy is to not have a fixed price listed online, and to reply to emails promptly with pricing with offer to have a call for complex situations.

ryandrake 4 months ago | parent [-]

As someone else posted, SpaceX lists their prices to launch things into space. Your software situations are more complex?

b3lvedere 4 months ago | parent | prev | next [-]

At the beginning of this year i had some reflection on projects at two clients. While the businesses of both clients is vastly different, they were kinda using the same setup: One business critical system. The rest was mostly standard stuff and both companies are about the same size.

Client 1 contacted us by phone they needed to upgrade their IT. The appointed account manager and project leader had no clue of the clients business. The approval of the project took about two months. Engineering was involed after the approval. The project took more than a year, mostly because of communication chaos on both sides. Everybody was annoyed.

Client 2 contacted us by email they needed to upgrade their IT. The appointed account manager emailed engineering. After some emailing back and forth for a couple of days, both parties agreed on the project details. The approval of the project took about fifteen minutes. The project took about a month. We got cake.

cutemonster 4 months ago | parent [-]

It's simpler to forward an email to the relevant people and agree on goals, than to forward a phone call :-)

randerson 4 months ago | parent | prev | next [-]

My least favorite is when I relent and get on their call, and after 30 minutes of answering their questions, they say "OK, next step is we'll schedule another call with our product specialist, because i'm just a sales guy and i didn't really understand most of that."

sjburt 4 months ago | parent [-]

The worst part is that the sales person has to go back and pitch their team on whether it’s worth their time to get back to you.

giancarlostoro 4 months ago | parent | prev | next [-]

Going to add the most important thing: It is perfectly fine to end calls early if it feels like it has phased itself out. Don't be afraid to do so! Everyone on the call is costing someone else a lot of income. This goes for internal or external calls.

freedomben 4 months ago | parent [-]

Yes, seriously. When a sales call is scheduled 30 minutes but 5 minutes in we have a conclusion, you get a lot of good will points from me if you thank me for my time, ask me if there's any other questions I have, and then conclude the call. You can even make this explicit with a quip like, "I'll give everybody 20 minutes back!" then it's clear you are being courteous with our time.

burnte 4 months ago | parent | prev | next [-]

I'm 100% agreement, right down to the CTO/CIO role. I just don't do business with them, period. I have a strict rule not to do business with people how cold call/cold email, hide info, and force pointless meetings. Once salesmen realize that I'm actually a very low maintenance customer who just knows what they want, they love me, I'm free commission to them because they never have to expend energy on me.

ccppurcell 4 months ago | parent | prev | next [-]

Also, this is very minor but phrases like "get on a call" or worse, references to jumping or hopping, really irritate me. What's wrong with that good old English verb "to have"? Or better yet, call is (believe it or not) a verb! Can I call you? Maybe. Can we hop on a quick call? Absolutely not.

epolanski 4 months ago | parent | prev | next [-]

I'm a freelancer and sometimes I have to recommend software or services for my clients.

When I evaluate choices I automatically remove all of those that don't have pricing up front as I have no time nor intention to do this. I don't think any company lost millions on me, but many lost tens of thousands.

API providers are the worst, but I kinda understand them.

chefandy 4 months ago | parent | prev | next [-]

I’ve had too many bad sales experiences to deal with that. The second someone tries to force me into a sales call for a non-customized or self-configurable service or product, I assume they’re just shamelessly setting me up to extract as much money from me as they possibly can. I just can’t assume good faith on the part of a company that only distributes product information through someone making a commission. It feels like they’re inviting me into a mouse trap.

mooreds 4 months ago | parent | prev | next [-]

We sell a devtool (FusionAuth, an authentication server).

We have clearish pricing on our website (the options are a bit confusing because you can self-host or pay for hosting), but we do have our enterprise pricing available for someone, and you can buy it with a credit card.

In my four years there, we've had exactly one purchase of enterprise via the website. But every enterprise deal that I'm aware of has researched pricing, including using our pricing calculator. Then they want to talk to understand their particular use case, nuances of implementation and/or possible discounts.

Maybe FusionAuth and its ilk are a different level of implementation difficulty than keygen? Maybe our docs aren't as good as they should be (the answer to this is yes, we can definitely improve them)? Maybe keygen will shift as they grow? (I noticed there was mention towards the bottom of the article about a short discovery call.)

All that to say:

* email/async communication is great

* meet your customers where they are

* docs are great and clear messaging pays off

* devtools at a certain price point ($50/month vs $3k/month) deserve different go to market motions

numbsafari 4 months ago | parent [-]

At least you offer a pricing calculator.

When we are doing vendor research, we often dequeue or deprioritize vendors that do not have any kind of pricing available for the tier we require. Generally speaking, we assume things like volume discounts are available. Also, it's good to get a rough idea of what the delta between "Pro" and "Enterprise" happens to be. Not infrequently the reason that delta isn't available is because it's stupid orders of magnitude different.

If we know that up front, we know not to waste our time tire kicking with a demo account.

So, the middle ground you describes would seem, to me, to be the right place to be. Giving your pricing page a cursory glance, I would rank it pretty highly for the kind of "initial investigation" we might do.

I think from an entrepreneur standpoint, if I see a space with vendors with non-transparent pricing, I often think "there's an opportunity there".

HideousKojima 4 months ago | parent | prev | next [-]

>2. Know that the pricing is within the ballpark of reasonable given what your product does.

My goto line is "I can get a ballpark estimate for chucking 22 metric tons into low earth orbit, why can't I get a ballpark estimate for your boring enterprise software library licensing?" Links to SpaceX pricing help here.

bdavbdav 4 months ago | parent | prev | next [-]

I’d extend that to sales calls where they try to get you to bend your requirements to fit the mis-aligned product.

_nhh 4 months ago | parent | prev | next [-]

I wanted to hire a personal trainer who just couldnt coordinate a call with me and I asked him to send me the details per mail. They said they dont do emails so didnt choose them as it was to scammy for me

ralusek 4 months ago | parent | prev | next [-]

I'm also a CTO frequently making product decisions, and I refer to it as "Boomer pricing." You want to get on a call with me to assess the size of my company and whether or not I have some bureaucratic, unconcerned entity with an indiscriminate pocketbook. Clear pricing up front, and ideally a pricing calculator, or I don't even consider it.

If I make a product, I don't want you to use it because you found me first and I happened to harangue you on a sales call. I want you to find my product, compare it will full transparency to the other products, and go with mine if it best suits you. Anybody who behaves differently I immediately assume to be behaving in bad faith and is not actually confident in their product on its own merits.

BrandoElFollito 4 months ago | parent | prev | next [-]

When my team organizes calls or onsite mtgs with vendors, they always tell them to remove the first 10 slides because we are not interested in why security matters, how it changed over the last 20 years and how great the company is.

They repeat this a few times so that it is clear.

Least week I had a meeting which started with the above, I asked if they knew what we asked, they said yes but they this is very important.

So I stayed, and when the ended the 15 slides with the hi

ArnoVW 4 months ago | parent | prev | next [-]

When evaluating and making purchasing decisions for my security department, I have the same dislike of this approach. And generally for me it is a red flag.

Not (just) because of price gauging, but also because generally it is indicative of a very young company. In many cases they do not want to give the price because they don't know the price; they're still finding out how much they can charge.

vishnugupta 4 months ago | parent | prev | next [-]

To add to those two, I need a working demo (in sandbox of course) of the product without which there's no way for me to validate to what extent your product meets my requirements. It doesn't matter how many screenshots, product explainers, videos you might have put up. Nothing comes close to a sandbox. Trial period is also fine.

joemclarke 4 months ago | parent | prev | next [-]

I’m a CTO as well and never get on these types of calls to get more details and pricing since they can be such a big waste of time. Someone else from our organization will get on the call instead and then give me the pricing details so we can make a decision.

shin_lao 4 months ago | parent | prev | next [-]

What's the most expensive software you bought?

4 months ago | parent | prev | next [-]
[deleted]
alon_11 4 months ago | parent | prev | next [-]

That’s so true, I have seen a company that offer a chat over Slack, so basically did the entire qualification you mentioned over the chat and gave me some high level data I needed before a full demo call. 2 minutes, no sales fluff. That’s was a nice touch.

TZubiri 4 months ago | parent | prev | next [-]

Not being upfront about prices is a major red flag, I associate it with someone selling pyramid schemes, or snake oil.

If I ask price and you insist on showing me a presentation to get me hooked and invested, I'm out. At that point you are bound to be talking to a salesman whose job it is to sell and you are experiencing a process that was designed and perfected to manipulate you into buying.

I don't want to buy from salesmen usually, directly from the manufacturer or provider is better, cut the middleman out. OTOH I have to be open to some imperfections, if we have to wait for someone or be inexperienced with sales process (introduction too long), that's fine.

On some industries it's possible for someone to do the work without saying price even. An electrician might be happy to do the work without talking about price, and then you have almost no recourse when it's a shitload.

brightball 4 months ago | parent | prev | next [-]

“Get on a call” is code for “we have commissioned sales people and in order to make that work we can’t let inbound leads from our website bypass them”

sz4kerto 4 months ago | parent | prev | next [-]

Are you me? I'm a CTO too, and I feel _exactly_ like this.

that_guy_iain 4 months ago | parent | prev | next [-]

> There are numerous products I likely would have purchased, but I either find a substitute or just go without because I won't play the stupid "let's get on a call" game.

> I've rolled-my-own solution more than once as well when there were no other good competitors.

I don't want to be rude but this sounds like terrible business decisions. I would say this is a case of cutting your nose off to spite your face but I suspect it's not your money your wasting rolling-your-own solution. Like it normally costs a lot more in dev resources to build instead of buying. And it seems like your doing it because of your ego and your unwillingness to play stupid games.

psyclobe 4 months ago | parent | prev | next [-]

Case in point this dumpster fire of a product: aparavi.com

thrawa8387336 4 months ago | parent | prev | next [-]

TLDR; please don't call him, he really doesn't like calls. Must be a gen z

throwaway98797 4 months ago | parent | prev [-]

your probably leaving money on the table then

i’d find that unacceptable as a ceo

you got to do the work to do what’s best for the company, not yourself