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John Burns

Understanding Value in Software

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When searching for software as a service (SaaS), the buyer always needs to be aware of one critical point: you are going to get what you pay for.

As an account executive selling SaaS, I get this all the time. Many buyers want the newest, fastest, most streamlined services, but all too often claim that it is too expensive or out of their budget. Sometimes, this is a ploy to attempt to leverage a better price -- but many times there is a genuine gulf in software expectations versus price expectations. So let us dive in and break down what all goes into the pricing of a software.

Features are the most critical component of a software purchase. Let us start by assuming the software features are a perfect fit for the client’s needs. For example: If a software can do A, B, and C, and that covers a merchant’s needs exactly, it is a perfect fit. However, if it cannot complete even a third of the buyer’s needs, it is not worth the money. Or if it has more features than the buyer needs, it is not worth of the money. Both of the latter scenarios indicate that the software is not a perfect fit.

Most of the time when you buy a software, you are not just buying that software out of the box. Now, there are certainly solutions that you can buy in a store, install and you operate on your own -- that is not what we are talking about. When you buy a software from a company that specializes in it, you are buying that company’s full suite of services along with that software -- and that usually what comes with a price.

A lot of times, these additional services revolve around support, setup, and implementation. None of these exist with an out-of-the-box software, and therefore the price usually is not reflective of this. Keep in mind, that besides of the features, you are paying to have your questions answered any time of the day, but you are also paying for training and implementation  to ensure your business runs smooth.

So when considering the value of the software, it is best to factor in all aspects of the purchase -- not just the features. To learn more about us, click here to see how Payscape can help you!