Should B2B Software companies set end-customer or channel partner prices?

SaaS pricing

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.

SaaS pricing

 

 

This Post Has 3 Comments

  1. The 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.

  2. For 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.

  3. It 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.

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Beam Global, a marketing consultancy and strategic planning firm headed by Ori Ainy, advises B2B high-tech and software companies and startups on international marketing, sales, and business development and provides sales execution services. Beam (illuminate) in Beam Global refers to companies, which, even if they are small and unknown, can compete with large international companies by gaining global exposure and by projecting an image of up-and-coming professional big-league players that have the potential to lead in their field.

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