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There’s no software priced between $1,000 and $75,000. I’ll tell you why. The minute you charge more than $1,000, you need to get serious corporate sign-offs. You need a line item in their budget. You need purchasing managers and CEO approval and competitive bids and paperwork. So you need to send a salesperson out to the customer to do PowerPoint, with his airfare, golf course memberships, and $19.95 porn movies at the Ritz Carlton. And with all this, the cost of making one successful sale is going to average about $50,000. If you’re sending salespeople out to customers and charging less than $75,000, you’re losing money.

The 2 Things About Your Start-up Idea That Actually Matter | Inc.com

I’ve heard the high end of that number closer to $250,000 but the point still holds.

H/T @Jon_Ferrara

Source: inc.com

    • #Software
    • #Sales
  • 4 months ago
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