ventox35 profile picture
ventox35 profile picture

ventox35

Sales Leader

Politicker
Catalyst
Valued Contributor
+7

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?

๐Ÿ‘‘ Sales Strategy
๐Ÿ˜œ contracts
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13 comments

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oldcloser
Arsonist
2
๐Ÿ’€
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
1
Sales Leader
gotta build a physical structure. aluminum is expensive and so is the labor. usually ~$100-200k to build
oldcloser
Arsonist
1
๐Ÿ’€
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
1
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
1
๐Ÿ’€
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
1
Sales Leader
love it. appreciated!
CuriousFox
WR Officer
4
๐ŸฆŠ
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
2
They call me Daddy, Sales Daddy
Cost average it over the length of the entire contract. Thatโ€™s what cell phone companies do with the phones now.
ventox35
Politicker
0
Sales Leader
a very simple but elegant solution. definitely on the table
Diablo
Politicker
1
Sr. AE
Just curious why they are successful in EU - cost affordability, need, supply chain, no competitor?
ventox35
Politicker
0
Sales Leader
brand recognition. been around over there for a long time. relatively unheard of in the US.
Kosta_Konfucius
Politicker
0
Sales Rep
The advice on having lenders to support I think would be the best idea
JDL
Catalyst
0
CEO
Go fully SaaS. Sell it as high ticket. Multiyear contracts. Include fancy dashboards

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