Align your offering with how your customer does business


It's not generally possible in larger companies, but in the more nimble, fleet footed organizations, it can pay to adjust your pricing approach to the way your customer does business.  Case in point, as a software vendor we were able to offer a monthly subscription or an outright purchase plan.  Each requires a good sum of money and usually up front.  The client had a variable business stream and sold labor hours.  The same labor hours that used the the software we sold.  We were able to jointly craft a deal whereby the client would pay by the hour.  A couple of key take a ways here:

1. The client knows generally very well how many labor hours they would consume in the coming year and they shared that with us.

2.  The client was able to share with us the tolerance for their customers' increase in hourly rate with the use of the software.

3. As the client was able to bid and win more jobs, we shared in the revenue increase through software use.

Over a period of a few years, revenue increased 6 fold.  The pricing model encouraged use, and not avoidance.  Good business for both of us.