Should B2B Software companies set end-customer or channel partner prices?
While those that tend to set the price for the end customer wish to enforce tighter control over their final pricing, those that favor the channel pricing would claim that they just want to get their cut in the deal and don’t mind the partners to charge their respective customers as much (or as low) as they wish.
A recent poll that we’ve held among participants of a Webinar on “Pricing B2B Software and SaaS Products for Global Success” provided the following findings.
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Omer Hevlin
2 Aug 2021The answer lays in the nature of the business and its vision.
While a global branded business should seriously consider end user price and have a global pricing policy, an OEM or unbranded firm should only consider it cut in the deal, meaning their channel sell price.
Alexander Kapitulsky
2 Aug 2021For a branded product, the price should be uniform, taking into account the interests of its distributors. Moreover, depending on the number of sales, the price may be lower. So should there be a franchising pricing strategy.
Yona Flink
24 Aug 2021It all depends on what is required by the distributor of a brand product in order to distribute the product. Is it a product that sells itself or a product that requires the distributor to invest deeply in distributing the product to different market sectors, ethnic groups in order to break into the market, and the cost of storing, marketing costs, and labor distributing costs as well as profit margin.