Question

Topic: Strategy

Value Of Software Compared To Number Of Tables

Posted by Anonymous on 50 Points
We had a customer that said our software was only worth a certain amount because it had less than a certain number of tables. He's the technical contact and is making the decision to purchase our software.

For example, he may have said that the software was not worth a certain price because it had less that 30 tables.

I would expect that there are very large databases that have great dollar value that have 30 tables or less.

I would expect that there are some large flat file main frame or mini computer based databases that don't have many files at all. Like government census or tracking database.

Can anyone think of some examples?
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RESPONSES

  • Posted by SRyan ;] on Member
    Sounds like your customer is guilty of bluffing his way to the top. Number of tables? Give me a break!

    He's also giving you an excuse, not a REAL reason to negotiate. Do as Paul says and avoid letting this IT guy latch onto the database issue. Say something like, "Yeah, our customers have always appreciated the streamlined design of our data model. Now, about the licensing agreement..."

    Chances are good he'll try to find something else weird or insignificant to complain about. Either he's trying to look smart (in a rather stupid way), or he's just an inexperienced negotiator. Put the best guy on your sales team on this one!!

    - Shelley

    ps. Also remember that you need to help this IT guy look good to his boss, so your job is to help him explain why he's a hero for buying your product.

    pps. That ps is probably the best piece of advice in my response!
  • Posted by Chris Blackman on Member
    What on earth has table count got to do with functionality?

    Does this software do the job the customer wants to use it for? If so, who gives a hoot?

    I would focus on your key value proposition that gives benefits to the customer - functionality, performance, ease of use, inbuilt help features, as well as implementation assistance, training, after sales support and 24/7 help desk for critical applications.

    Ignore Mr. Red Herring, he's just trying to blind you with his particularly weird science.

    My guess - he really wants your software and this was the ONLY thing he could find to say to try to knock down the price.

    Why not come back with an additional cost for adding however many tables he thinks he really needs - that should make the objection vaporise!

    Hope this helps.

    ChrisB
  • Posted by telemoxie on Member
    Based on this person's comment about number of tables and his approach, while I'm sure this fellow has tremendous technical influence, I doubt seriously that this fellow has the economic influence and authority to purchase the software. If you have not already read it, I would HIGHLY RECCOMEND a book called The New Strategic Selling (also available on tape) which can help provide some guidance and specific suggestions.

    I disagree with those who say you can ignore this fellow and his comments. While he probably does not have the authority to say YES to the deal, I would bet dollars to donuts that he can say NO to the deal.






  • Posted on Member
    It sounds to me like the number of tables is a solution looking for a problem. People (especially his boss) make purchases to solve a problem. You need to understand what problem he is trying to address and focus on how well your solution solves the problem.

    Sit this guy down and ask him what the purchasing criteria are and the relative weighting of each. If there are funny ones like "number of tables" push back and ask him why is this important. When you understand what the real buying criteria are you can then position your product versus the competition and come up with your value proposition.

    Regards
    Pat Divilly
    CEO MarketWare International
    www.marketware.biz

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