This time of year, companies tend to have more CAPEX than OPEX.

if you're selling SaaS subscriptions, these typically fall in OPEX, and most companies are already out of budget for this.

BUT, if you restructure your deal in a way of selling a perpetual license for multi year, not only can they save OPEX in coming years (make it a sweet deal for them), but you can add a recurring CAPEX amount for support/maintenance.

Get creative, work with your buyer and find that budget.

Hope it helps, but I am open to hearing pros and cons from the more experienced savages
๐Ÿง  Advice
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19
Pachacuti
Politicker
3
They call me Daddy, Sales Daddy
This can be true, but in regulated industries, like most utilities, classifying SaaS as anything but OPEX is difficult to do. And can vary from state to state here in the US, as well as SaaS application to SaaS application.
Sunbunny31
Politicker
1
Sr Sales Executive ๐Ÿฐ
Looks like he's recommending perpetual licenses, so may have a non-SaaS delivery model. Good reminder for those who have some flexibility in deployment.
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
Sometimes those perpetual licenses can classify as OPEX, sometimes not. Depends on the Regulators and the clientโ€™s willingness to go for it.
KPIMaster
Politicker
1
Enterprise Account Executive
The problem is (especially in Utilities) their accounting regulations will require some sort of language around being able to take the SaaS product on prim. Most modern SaaS companies arenโ€™t going to allow that.
Sunbunny31
Politicker
0
Sr Sales Executive ๐Ÿฐ
And that can only happen if onprem is available. Most SaaS companies abandoned that years ago.
Kosta_Konfucius
Politicker
2
Sales Rep
Going to bring this up in my 1:1 today!
antiASKHOLE
Tycoon
0
Bravado's Resident Asshole
So good that it's better than Tony the Tiger
Diablo
Politicker
1
Sr. AE
What if the client has no budget for the year and not comfortable with multi-year and there is no additional support/maintenance cost?
TennisandSales
Politicker
1
Head Of Sales
i had this happen a few times.

I had the main POC tell me that he needs this to fall into the Capital budget nor the Operating budget. so i just moved a few words around and BOOM. approved.

good reminder to ASK the buyer what budget this will come out of, and who is paying for it.
punishedlad
Tycoon
0
Business Development Team Lead
Do you have an example of how you've accomplished this?
activity
Politicker
0
VP, Business Development
Great advice!
Sunbunny31
Politicker
0
Sr Sales Executive ๐Ÿฐ
My deals can be structured to be paid in the new year.

However, to that point, if one of your customers has budget to spend NOW, this is a great time to get creative and help them get something from you.
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