Mispriced Feature

Hey All

I sell a software that’s generally well received and creates great value in the market. I think generally it’s priced well and we have the ability to price up when creating extra value.

I have a monster issue though. We include a feature that’s pretty common for software but the pricing is way out of line with clients expectations. Not even close to market rates. Our pricing team has it set to boost profits but I think the feature should be priced essentially to cover costs. This feature, which more mature clients expect to be free essentially comes in at an additional 40% of the base pricing. It’s creating a situation where even if a client pays well over our cost for it generally I have to discount that feature. If I build it into our pricing for proposals I generally am then increasing costs in the proposal by 40%, but not actually over our internal list.

Any advice on getting pricing and product to reduce this from an absurd “profit center” (no one sells it at internal list it’s always discounted) to a more reasonable price reflecting the actual value of the feature?

Thanks!