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Justifying the steep rate increase in software engineering resources

It's no surprise that the demand has skyrocketed amid pandemic and "forced digitalisation' of vast amount of businesses globally


High demand came with:

  • talent shortage on hiring market
  • higher salary expectations of good quality engineers
  • unprecedented talent shortage
  • need to increase the rates for clients to cope with increasing demand vs supply shortage (also to increase the profits!)


On the other hand...

  • clients are moaning about prices increases
  • they are objecting with all the covid-related instability on the market
  • budget cuts etc


How do you justify? discuss.

๐Ÿ‘‘ Sales Strategy
19
1nbatopshotfan
Politicker
+5
Senior Director, Enterprise Technology
I think itโ€™s important to address the problem head on. Unprecedented hiring in the space combined with a health crises in India. Itโ€™s industry wide and not specific to your company or product.ย 
swizard
Celebrated Contributor
+9
Sales Evangelist
Totally agreed about the scale of the issue - it's a global-industry-wide challenge.ย 
sa
saleskick
Opinionated
+1
Sales Specialist
agreed on both points here!ย 
Chep
WR Officer
+10
Business Development Team Lead
Find their pain point and really do some discovery so you can justify the price when it comes time. If they are still complaining be honest and let them know quality engineers are hard to find thus we have to pay them more
CaneWolf
Politicker
+12
Call me what you want, just sign the damn contract
Just be honest that rates are higher. FWIW, I've had clients complain about rates for my entire career that involved implementation or partner implementations. It isn't new.

There is a lot to be said about efficiency. I'd point out that there are low-cost agencies if they want to go that route. But then lay out all the risks (and there are quite a few) going that path. You want the clients who are willing to pay for good work.
11
If sales people didnโ€™t have quotas, and were paid just a flat rate of whatever they sold, do you think think that A)Salespeople would work just as hard? B) Create a better culture within the Sales Org? C) Create better relationships with their buyers?
Question
32
2
Justifying higher prices in SaaS products
Advice
11
7
Would take into consideration where the software company is based on when buying?
Question
8
Does it matter where the software company is based?
+51
Salesgirl , ย  jwils , ย  Jackywaky ย  and 51 people voted
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