Determining the Real Price of Enterprise Software

by Cutter Consortium

When was the last time you had anything to say about what your enterprise software should cost? Probably never. Consider the following scenario: you have been presented with a $5-million list-price proposal (on which a 30% discount has been offered, plus 15% annual maintenance) for a Web-enabled sales decision support system for your 3,600 sales representatives and 400 sales managers. You think that you've done a great job when, after a few drinks and a fine dinner with your well-heeled account executive, you lean over and say the account executive has your business if the 30% discount is raised to 40%. The executive agrees on the spot.

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Determining the Real Price of Enterprise Software 22 February 2001