Holm: Enterprise software is inelastic, so vendors must set high initial prices
Karsten Holm · How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk · Dec 3, 2024 · at 22:51
Karsten Holm, VP of Pricing and Monetization at Splunk, discusses B2B pricing dynamics and list price strategy at the SaaStr Annual AI Summit.
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“In enterprise sales or enterprise software, it's not super elastic. That's the bottom line. Splunk may be one of the more elastic enterprise products than others, but you're not going to wake up one more, one day and say, oh, let's buy a bunch of Oracle today. Oh, it's half price. Let's buy twice as much. It's not, that's just not going to happen. And as a general rule of thumb, it's probably better to start higher and give yourself option value.”
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