Sweet CX charges $26k enterprise ACV and $10k setup fee
Valerie Peck · $800k Bootstrapped SaaS Spun Out of $3m Agency, how'd she do it? · Mar 12, 2022 · at 2:46
Valerie Peck, founder of customer journey mapping platform Sweet CX, breaks down the company's pricing model and contract sizes on Top Founders.
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“So it, the annual enterprise view is a roughly 26,000 dollars, and then there's a 10,000 dollar kickstart to get people going. We have clients who pay us over a 100,000 dollars a year to guarantee their time so that we can coach them and help them as well.”
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“So having an investment like that over the period of time that you're saying is far more, the cash flow is far better when you're doing an alignment in a sale like this as compared to trying to make it yourself bootstrapping.”
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“Because he wanted an asset deal, because he can write a hundred percent of the cost of the company down and immediately in year one.”
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“Unfortunately, buyers are set up so that they want to do an asset purchase, and an asset purchase then results in a 50% capital gains cost for the sellers. So, interestingly enough, our tax code is not designed to be particularly conducive to M&A.”
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“You know, the software game, when you have consulting associated with professional services and software, it devalues the EBITDA instead of increasing it.”
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