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November 14, 2024

Why Fixed Pricing Closes More Deals

Why Fixed Pricing Closes More Deals

There’s a lot of different approaches to pricing, but I suggest you keep it very simple and offer your customers fixed pricing.

1. Knowing the Price

Usage based pricing and similar models may seem attractive as the customer only pays for what they use, but that also means they don’t know exactly how much it’s going to cost over time. That uncertainty can stop you closing a sale.

2. Tiered Pricing

Fixed pricing doesn’t mean “all you can eat” for a customer, if you use tiers you can offer fixed pricing while charging for both usage and features. That’s going to allow you to maximize revenue.

3. Complexity

Pricing and payments tend to get complex quickly and it’s a very sensitive area for your customers. Fixed pricing helps you avoid lengthy engineering projects and numerous support requests.

Best of luck out there.

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Ash Rust

Ash Rust

Managing Partner, Sterling Road
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