FY2012 is Coming: CEOs, Why Not Consider Raising Prices?

November 21, 2011

2012 is right around the corner and CEOs and management teams in early and expansion stage software companies are in the middle of strategy and budget planning sessions and everyone is looking for ways to generate more bookings and revenue growth.

We all know the common way this is done is by companies spending more in marketing to generate more qualified opportunities, adding more inside or field sales reps or expanding channel partners and resellers.

Another Option: Raise Prices

Many CEOs never consider this option. In fact, many CEOs I talk to are actually afraid to raise their prices or even think about it for fear that they might lose ground to their competition in their chosen market segments. Last year I wrote a blog on this titled, “Business Growth Strategies… Why Not Raise Your Prices”.

Recently I read a blog post that one of our OpenView partners, Adam Marcus, sent around to the team to read because one of his companies was wrestling with this very issue. The blog was written by David Skok, a former entrepreneur-turned-VC at Matrix. The blog was titled “Multi-axis Pricing: a key tool for increasing SaaS revenue,” and you can check it out here.

Raising prices is a tactic to which all CEOs and their management teams looking for growth ought to give some serious thought. It is one strategy that all companies should revisit every year as part of their planning process. Give it a look — it may be the corner stone that that drives your growth and success in 2012!

All the best!


P.S. This works for all license models, not just SaaS.


Venture Partner

<strong>George Roberts</strong> is a Venture Partner at OpenView. He enjoys partnering with companies and helping them achieve their goals through strategy, focus and operational execution. From 1990 to 2003, George spent 13 years at Oracle Corporation, most recently having served as Executive Vice President of North American Sales. While at Oracle, George was responsible for over $1 billion in revenue and more than 2,000 employees, reporting directly to the company’s CEO and Chairman, Larry Ellison.