Pricing Strategies

Looking for some SMB experts.

Anyone sell a product/service that has a high upfront capital expense?

I'm interviewing for a role in the SMB space. this service has a VERY high upfront implementation cost, followed by a very low operating cost.

So far the options are 1) pay the big expense outright 2) enter into a leasing agreement. I'd like to be able to offer some ideas on how to make the service more accessible, as sales in the US have been a bit slow. they're having big success in europe, but it's been a challenge here.

Any other pricing strategies you've had success with for SMB?

👑 Sales Strategy

😜 contracts

13 comments

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oldcloser

Arsonist

💀

Can you provide some detail on what "capital expense" means? If it's ProServ vs physical goods up front it makes a difference.

ventox35

Politicker

Sales Leader

gotta build a physical structure. aluminum is expensive and so is the labor. usually ~$100-200k to build

oldcloser

Arsonist

💀

If the structure is a bonafide asset that can be collateralized, find a 3rd party finance co that believes it is such. Then you've got easy terms. I've got to think this has been thought of... no?

ventox35

Politicker

Sales Leader

I'll find out later this week. they gave me only a high level overview of the deal structure. it's obvious this is where they need the most help..i've definitely thought of finding partners willing to offer financing. kinda like a car dealership.

oldcloser

Arsonist

💀

I've pulled this off before. Albeit on a smaller scale, you might not be surprised at how many will come out of the woodworks to lend money for non-traditional projects. Worth tossing the idea around anyway.

ventox35

Politicker

Sales Leader

love it. appreciated!

CuriousFox

WR Officer

🦊

I actually found a 3rd party to lend to a super sketch client that our in-house wouldn't finance. It worked out so well I now have the 3rd party saved as a fav in my contacts. He was smart.

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Cost average it over the length of the entire contract. That’s what cell phone companies do with the phones now.

ventox35

Politicker

Sales Leader

a very simple but elegant solution. definitely on the table

Diablo

Politicker

Sr. AE

Just curious why they are successful in EU - cost affordability, need, supply chain, no competitor?