for those of you in software sales...what increase percentage are you seeing on renewals? My leadership team is pushing anywhere from 108%-120%.
LittleDoesThings
Viability…Where are you at?
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Last year we did a COLA 4% increase for the bottom tier (house) accounts and now we are client by client moving contracts from transactional to SAAS based that is generally seeing about a 10/15% increase in MRR for the real clients.
No real push back either.
No real push back either.
I'll add we make it seem like we are bundling some new or little known existing features that give them a feel of a real value even though it's basically a increase for little to no product gain.
How you present things is going to be the real difference.
How you present things is going to be the real difference.
Used to between 5-10%. Never more
Back in my day 😉
20% seems really high. 5-10% was pretty common, but it was only done once every couple years.
I typically like to see the bottom threshold of 108%… anything higher for the same service seems rude to me.
Were there any new bells or whistles added to the product, or are these customers paying 20% for the exact same service level?
For the most part, the same bells and whistles. If their usage of the software went up over their last contracts, they would fall more towards the 20%
3-7% and it's a COL adjustment. We're constantly upgrading the platform, though, so it's not as though it's stagnant.
Samesies. Upgrades are happening all the time. Some kind of release every few weeks and major ones many times a year.
What is COL?
Pretty sure it's Cost of Living. Like general inflation/price index increases.
Oh , that makes sense, thank you.
20% is pretty high unless its either A) An old customer who was on a different pricing model and needs to get closer to the current model, or B) A customer that had some pretty heavy discounts baked into the initial contract that have now expired.
Typically 5-10% at renewal, and 3-7$ YoY for multi year agreements is what I have seen.
Typically 5-10% at renewal, and 3-7$ YoY for multi year agreements is what I have seen.
Yeah we have the same 5-10% and 3-7% on multiyear
5-10% depending on customer health and complexity of solution.
Typically 8-10% increase
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