March 20, 2023
1. Provide several pricing tiers.
Offering a variety of pricing options is one of the best ways for ERP vendors to lower the entry barrier for potential customers. This might include a budget-friendly basic plan with constrained functionality, a mid-range plan with additional features, and a high-end plan with sophisticated features. ERP vendors can meet the needs of various clients and accommodate a variety of budgets by providing a selection of pricing plans.
2. Think about a subscription-based system.
Consider a subscription-based pricing model as an alternative, where customers pay a recurring monthly or annual fee as opposed to a one-time license fee. This may be especially appealing to SMEs since they might not have the resources to make a sizable upfront payment. A subscription-based business model can also assist ERP vendors in creating a steady and predictable revenue stream.
3. Present various payment options
ERP vendors can also give prospective clients flexible payment choices, such as financing or installment payments. This can lower the cost and increase accessibility of the software for companies with tight budgets.
4. Pay attention to the value statement
Concentrating on the value proposition of the ERP software is another way to get past the high license cost barrier. Vendors of ERP software should highlight the advantages that their products can offer to customers, such as increased productivity, increased accuracy, and improved decision-making. ERP vendors can defend the high price of their software by emphasizing the benefits that it can provide.
5. Offer a free trial or demonstration
A good way to persuade potential customers of the value of the ERP software is to provide a free trial or demo of the program. Customers can use the software for free prior to making a purchase, which can help increase customer confidence in the brand and the product.
6. Provide reductions
ERP providers may also provide discounts to prospective clients, especially those in economically struggling industries or sectors. This can increase the likelihood of making a sale while strengthening customer relationships and fostering goodwill.
In conclusion, a major issue for ERP vendors is losing potential clients because of high license costs. ERP vendors can expand their businesses and create a devoted customer base by putting these strategies into practice.