Software
Northfold Software
A pricing model the sales team believes
A 60-person software company had six price lists and a discount for every deal. We replaced them with one page of three plans that the sales team helped write.
The result
+18%
average contract value
5 wks
to roll out to every rep
1
price list, down from six
The brief
Northfold had grown by saying yes. Each large customer had a custom price, and the finance team could no longer say what the company actually charged for anything.
What we did
We interviewed twelve customers and eight reps, then priced the product on the one thing customers said they valued: how many projects they run each month. Three plans, one usage meter, and a rule for when a discount is allowed.
The reps wrote the discount rule with us. That mattered more than the numbers.
What changed
New customers moved to the new page from week one. Existing customers moved at renewal, with a letter that explained the change in four sentences.
Where it stands
Average contract value rose by 18% over two quarters, and no large customer left because of the change.
“
The reps stopped negotiating against themselves. The new page is short enough that they can explain it from memory.
Dev Kaplan, Chief Revenue Officer
