Welcome to Decoding Sales, episode 8, the price.

Price is the single most important part of any discussion or at least that's what it seems like from the outside.

In this episode, Peter's going to demystify how to think about pricing as a salesperson, how to think about discounts, and how to get a

deal when you're competing against a cheaper competitor.

Peter, just to kick things off, let's start with the basics for our audience.

What are the components that go into the price?

Sure. So usually for price in a technology company specifically,

there is multiple ways that you can think about it and

structure it. One of the more common ways is to charge per user per month or per year

and do a license fee based off a list price that you set.

List price just means what is the price that you publicly

mention on your website and what is a price that is the baseline

price that you have for a specific tier of service you're providing.

Oftentimes two, technology companies will layer on professional services,

meaning that there's a human component of actually integrating and implementing the technology so that could be either

flat or a monthly maintenance fee or yearly maintenance fee.

And then there's other structures too where you just have an overall flat fee, an enterprise license fee where you as a buyer know that it's a flat fee for the year, but you get to share the technology with the entire company.

So there's a blanket license fee

that you can also potentially negotiate

if you're a larger company or even sometimes smaller

companies can do this as well if they're buying.

So there's that component, just the pricing component.

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