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Are There Any Tools To Help Define Global Pricing Models?

Are there any tools to help define Global Pricing Models? In a software market, there is much more than just currency translation. How does one define this model for each market (assuming we start from US pricing)?

You would define global pricing the same way you would define pricing across other types of market segments. Before defining the pricing, you need to know the differences in value that each segment perceives and what competitive and alternative offerings there are. If you start with US pricing, does the other region have access to other offerings (at a particular price) and does your product offer more or less value?

BRS has a software tool that can walk you through the questions you need to answer (not specifically for global pricing, but it should be useful for you).

Also, Jim Geisman of www.softwarepricing.com did a webinar for us on SaaS pricing, but the basic concepts he talked about in differentiating legacy pricing versus SaaS pricing can apply over different regions. Check it out here.

As you have probably discovered, many regions either cannot afford US prices or don't want to pay them. You're trying to expand into other markets to grow and increase your market share. You have to be careful not to devalue your products in markets that have valued what you provide at the higher prices by substantially lowering them in other markets. You may want to repackage with a smaller set of capabilities, different business model and/or pricing model, tailor or localize certain parts (possibly using a local specialist or alliance partner), and sell and market specifically in that region. Going global does not just mean dealing with currency translation as mentioned. And it doesn't just mean translating into another language!

Answered by Barbara Nelson