Pricing and licensing audit serves a pivotal role in ensuring the alignment of effective and scalable business operations with the objectives for margin of your company's major stakeholders and decision makers. Leveraging ESPE's expertise and drawing from the best industry standards and practices, the audit aims to present actionable recommendations for enhancing the existing Company Pricing and Licensing Policies.
Key highlights of the audit encompass:
- Examination of Pricing and Licensing Policies (if those exist and are in alignment).
- Evaluation of internal and external pricing policy coherence, suggestions on harmonization with market dynamics.
- Assessment of scalability readiness for expansion into new target audiences and territories.
- Examination of pricing methodologies for solution add-ons and cross-selling, encompassing both internal and external "complimentary" positions.
- In-depth market research to inform future decision points, encompassing competitors, trends, and the rationale for changes.
- Channel pricing policy analysis, including the intricacies of discount decision trees.
In the context of business scalability, licensing exerts a profound influence on the functionality of sales support systems, their associated costs, and the expenditure required for their maintenance and enhancement. A notable number of software vendors encountered substantial hurdles in scalability, necessitating a re-evaluation and modification of their established pricing and licensing policies even as they had already cemented their status as well-established enterprises. This led to substantial investments in comprehensive renovations.
Business logic that functions effectively within a certain threshold of monthly orders can often become less efficient and chaotic as order volumes increase due to market growth and heightened demand for exceptional products. Furthermore, in the realm of channel sales, the incorporation of automated quoting tools becomes indispensable according to industry standards. The cost-effective implementation of such tools is heavily influenced by the design and adaptability of the company's pricing and licensing policies to reflect contemporary realities.