No Calls
(keygen.sh)1603 points by ezekg 6 months ago
1603 points by ezekg 6 months ago
Oh I might add another huge thing: Have a way to justify/explain your pricing and how you came to that number. When you have to "learn about my company" in order to give me pricing info, I know you're just making the price up based on what you think I can pay. That's going to backfire on you because after you send me pricing, I'm going to ask you how you arrived at those numbers. Is it by vCPU? by vRAM? by number of instances? by number of API calls per month? by number of employees? by number of "seats"? If you don't have some objective way of determining the price you want to charge me, you're going to feel really stupid and embarrassed when I drill into the details.
>you're just making the price up based on what you think I can pay
It should be based on the email address used. If, for example, your email ends in @google.com, you get charged more. If it ends in @aol.com, then they take pity on you and you get a discount.
My co-worker's grandfather owned a TV repair business. The price was entirely based on the appearance of the person and had nothing to do with the actual problem. This way rich people subsidize the repairs of poor people.
More like the people who appear rich subsidize the repairs of the people who appear poor. Probably usually fairly accurate but it's amusing to think about the edge cases where the truly rich don't feel the need to dress wealthy anymore and get their TV repaired for cheap.
Correct. Market value is not the cost of making X plus a margin. Many people get that wrong.
Marker value is what someone else is willing to pay.
If I remember correctly, Amtrak does something like this for pricing their train tickets. It is not the cost of going from A to B. It is priced so the more populated area travelers, North East Coast, pay higher to help reduce the cost for those in the middle of the USA. This helps make tickets more adorable for the more poor individuals.
> This way rich people subsidize the repairs of poor people.
tbh I have no problem with this as long as the work was done well.
I've always wondered about this. My wife always tells me to close the garage when folks come to the house to give us bids on jobs so they don't see the cars. Not that a Tesla indicates wealth but I guess it indicates something? I tell her she's paranoid... maybe she's not.
You know it might be also priced on “this guy feels like a pain to work with after the way he asks questions, let’s put the price up”. There is no way to objectively explain that without having person offended - so I am going to put a price I think will cover me dealing with BS questions or attitude of the customer and if he walks it is still a good deal for me.
We might think that companies need every single sale - well no sometimes you want to fire a customer or not take one on.
You don't have to change you process, so you can still explain it rationally.
Just leave off the "then I multiplied by 10" part.
Which I did by accident once ( not by 10, but it was still substantial )... but it turned out the customer was delighted because we were still 50% vs their existing vendor.
Enterprise pricing is a farce.
I very much agree with the poster above about vendors disqualifying themselves.. another red flag for me is the Two Suits and Skirt pre-sales Hydra Monster that big vendors love to send around, to scare you into letting them capture all the value that their purporting to provide you.
And yes, the above shows I've been both sides of the fence. I felt it was going to be good experience, and it was, but I have regrets too.
>just making the price up based on what you think I can pay
It's called supply and demand, and it's the way things have been priced since the dawn of commerce. The only time the price is based on cost is when the market is competitive enough to drive that price down, and the cost acts as the floor. Even then, if you can get your costs below those of your competitors then it's your competitors cost that can act as the floor.
The way things should be priced is based on the value it gives you. If your service makes me or saves me $100 of value per month, I should be prepared to pay up to a little below $100 for it.
No it's not called supply and demand, it's called price discrimination. The way things should be priced is based on the value it gives the market as a whole. Anything further is an anti-competitive attempt to vacuum up more of the buyer surplus.
> It's called supply and demand
Supply of the kinds of services under discussion here is rarely limited in any practical sense, so scarcity does not play.
> The way things should be priced is based on the value it gives you. If your service makes me or saves me $100 of value per month, I should be prepared to pay up to a little below $100 for it.
This ignores opportunity cost. Very few buyers have infinite cash, they do tend to have infinite ways they could spend money though and many of them will give a far better return than a couple of percent.
In reality if you're adjusting your pricing to try and extract the most you think you can get away with from the customer, you will lose a substantial number of buyers - and probably more so with buyers who have a technical mindset.
And also, the customer has the money and gets to make a choice. Sure, supply and demand is a real thing. But there is also a notion of friction blocking the sale. Everyone absolutely hates considering a new purchase that doesn't give you clarity on details and price.
So that CTO says I'm probably not going to bother with you if you don't have a clear price. I also practice this purchasing way. Everyone should. So sure, someone in sales will fight to the death to justify their strategy of obfuscation and charging what the market will bear, and to try to justify their presence in the sales process with some kind of commission and argument about how they caused pain for the buyers and got more money. Meanwhile, company B sold me a widget for whatever, I already paid them, there was no salesperson wasting time on either side.
No, it's setting a price and seeing how many people will pay that price, varying it and see who will pay that. You can derive a demand curve and work out the best price to maximise your revenue. And you can do even better if you can do some price discrimination, so you can sell some to people who otherwise wouldn't be able to afford it, which still charging other more. This isn't judging someone's salary before quoting a price, it's things like charging different prices in different markets, or offering student or senior discounts, or coupons etc.
>When you have to "learn about my company" in order to give me pricing info, I know you're just making the price up based on what you think I can pay.
That is how 99% of sellers do business. The upper end of the price range is what the buyer can pay, the lower end is what their competitors are asking for. Some sellers are lucky to have few competitors, so they can waste more of the buyers' time trying to narrow down exactly how much they can or are willing to pay.
This is how a lot of consumer businesses are pricing now.
Then they use the same consulting firm as their competitors to set prices.
I'm confused by this, why would sales team know in detail the vRAM contribution to sales price, and how is it relevant to your purchase decision? I've never heard of enterprise/SAAS pricing to be based primarily using cost plus pricing.
Some products (especially infrastructure) still bill based on (outdated and often irrelevant) core counts and memory count. A few years ago I talked to a seller of a PDF library/toolkit who wanted to know my production and staging core count before they would quote me a price. Explaining to them that it runs in a serverless function on-demand was fun, especially because they would say things like, "well, what's your average?" I would often reply and say my average is defined by a function where you take the number of active users (which itself is highly elastic) and calculate for average runtime at 4 cores per user for approximately 50 ms per page (which page count is highly elastic too) and sum to get "average core use per month". Needless to say it was like pushing a rope.
More common now with SaaS seems to be employee count or some other poor proxy measurement for usage. I love actual usage based billing, but some of the proxies people pick are ridiculous. Like, if I have 5 seats or 500 employees, but 2 users spend 6 hours a day in the software and then 10 others maybe look at it once a quarter, paying the same for those is absurd and is not usage-based billing at all.
Isn't that exactly how a lot of things are priced? Ie. Snowflake. Pay for compute, pay for storage, etc.
I've always agreed with this take but now as a B2B founder doing sales, I think it can honestly be interpreted a lot more charitably.
I get on an initial discovery call to learn a few things, like:
* How much will it cost us to support you based on what you're using our platform for?
* How expensive is this problem for you today?
* From there, how much money could we save you?
My goal is to ensure a (very) positive ROI for the lead, and that we can service them profitably. That's how I put pricing together. It seems pretty reasonable.
Our platform is also rather extensible, and I want to make sure that they'll understand how to use it and what it's for, instead of becoming an unhappy customer or wasting their own time.
I was just thinking about this today. Basically replacing my price list or prefacing it with something like : "We've designed the pricing and services to be affordable by bootstrapped startups with just one investing founder. Additionally prices are comparable to a FT SWE on a quarterly basis."
Because the truth is that the contracts are almost always different, so while price tables are good to get an idea, words are just better at conveying the ballpark, and they lack the illusion of price rigidness.
For #2, someone once said there are two pricing models (was it Joel Spolsky? Don't recall..):
$0 - $999 - direct sale/download, pricing on website
$50,000+ - full sales team, no pricing on website
And essentially not much in between... this has perhaps changed a bit with SaaS, but this is still semi true.
Oh yes it was Joel Spolsky: https://www.joelonsoftware.com/2005/11/18/price-as-signal/
That's like a restaurant, with no prices on the menu.
"If you have to ask..."
I would definitely like to never have to talk to another "people person," and no-calls-but-we'll-give-you-the-info-you-need policy sounds great.
I think you mean this link: https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-...
Agreed. As someone in a place to make purchasing decisions, if I can just sign up and try something without having to "jump on a call" and sit through a demo, I'm more likely to do so. I'm more willing to meet afterwards if I like what I see.
As it happens, a while back I did exactly this for a company after reading a post about their launch on HN. In a later conversation with their CEO, I found out we were their first customer!
This sort of cuts both ways, I’m on the small business selling side.
Sometimes somebody will want a call, I’ll do my dance, tell them the price, then they try to nickel and dime to get a lower price - which isn’t on offer. That blows a lot of my time.
On the other hand, the software I sell solves some novel problems at scale and is designed to be extensible - so in cases where somebody wants to build on the foundation I’ve built I really do need a call to figure out if there’s a missing feature or similar I’d need to build out, or if there’s some implementation detail that’s highly specialized to a given situation.
By and large my evolving strategy is to not have a fixed price listed online, and to reply to emails promptly with pricing with offer to have a call for complex situations.
That doesn’t seem like a logical inference to me.
A house construction contractor doesn't have a price list for the sake of obscuring prices, nor because house construction is more complex than space flight.
It's because houses are custom and thus prices are too variable to list in any meaningful way.
For a SaaS product with significant custom integration work, it seems reasonable that prices might also vary in the same way.
A small-scale contractor doesn't have a price list, but a real estate developer who builds an entire subdivision at a time definitely has a price list. There might be taxes and fees on top of that, but everyone expects that anyway. At least the base product should have a clear price tag.
If I can tell in advance whether your SaaS product costs $10/seat/mo or $100/seat/mo, I'll probably feel more comfortable asking whether the custom integration work will cost $50k or $100k.
At the beginning of this year i had some reflection on projects at two clients. While the businesses of both clients is vastly different, they were kinda using the same setup: One business critical system. The rest was mostly standard stuff and both companies are about the same size.
Client 1 contacted us by phone they needed to upgrade their IT. The appointed account manager and project leader had no clue of the clients business. The approval of the project took about two months. Engineering was involed after the approval. The project took more than a year, mostly because of communication chaos on both sides. Everybody was annoyed.
Client 2 contacted us by email they needed to upgrade their IT. The appointed account manager emailed engineering. After some emailing back and forth for a couple of days, both parties agreed on the project details. The approval of the project took about fifteen minutes. The project took about a month. We got cake.
It's simpler to forward an email to the relevant people and agree on goals, than to forward a phone call :-)
My least favorite is when I relent and get on their call, and after 30 minutes of answering their questions, they say "OK, next step is we'll schedule another call with our product specialist, because i'm just a sales guy and i didn't really understand most of that."
Going to add the most important thing: It is perfectly fine to end calls early if it feels like it has phased itself out. Don't be afraid to do so! Everyone on the call is costing someone else a lot of income. This goes for internal or external calls.
Yes, seriously. When a sales call is scheduled 30 minutes but 5 minutes in we have a conclusion, you get a lot of good will points from me if you thank me for my time, ask me if there's any other questions I have, and then conclude the call. You can even make this explicit with a quip like, "I'll give everybody 20 minutes back!" then it's clear you are being courteous with our time.
Some people dont know when to end calls early and everyone else is too polite to tell them to end it. I had a manager who made it a point to suggest to end a call early. I try not to force calls to end early unless I know everyone on the call. I notice when its all devs its really easy to suggest ending early vs when non devs are on a call unless a dev manager does it.
I'm 100% agreement, right down to the CTO/CIO role. I just don't do business with them, period. I have a strict rule not to do business with people how cold call/cold email, hide info, and force pointless meetings. Once salesmen realize that I'm actually a very low maintenance customer who just knows what they want, they love me, I'm free commission to them because they never have to expend energy on me.
Also, this is very minor but phrases like "get on a call" or worse, references to jumping or hopping, really irritate me. What's wrong with that good old English verb "to have"? Or better yet, call is (believe it or not) a verb! Can I call you? Maybe. Can we hop on a quick call? Absolutely not.
I'm a freelancer and sometimes I have to recommend software or services for my clients.
When I evaluate choices I automatically remove all of those that don't have pricing up front as I have no time nor intention to do this. I don't think any company lost millions on me, but many lost tens of thousands.
API providers are the worst, but I kinda understand them.
I’ve had too many bad sales experiences to deal with that. The second someone tries to force me into a sales call for a non-customized or self-configurable service or product, I assume they’re just shamelessly setting me up to extract as much money from me as they possibly can. I just can’t assume good faith on the part of a company that only distributes product information through someone making a commission. It feels like they’re inviting me into a mouse trap.
We sell a devtool (FusionAuth, an authentication server).
We have clearish pricing on our website (the options are a bit confusing because you can self-host or pay for hosting), but we do have our enterprise pricing available for someone, and you can buy it with a credit card.
In my four years there, we've had exactly one purchase of enterprise via the website. But every enterprise deal that I'm aware of has researched pricing, including using our pricing calculator. Then they want to talk to understand their particular use case, nuances of implementation and/or possible discounts.
Maybe FusionAuth and its ilk are a different level of implementation difficulty than keygen? Maybe our docs aren't as good as they should be (the answer to this is yes, we can definitely improve them)? Maybe keygen will shift as they grow? (I noticed there was mention towards the bottom of the article about a short discovery call.)
All that to say:
* email/async communication is great
* meet your customers where they are
* docs are great and clear messaging pays off
* devtools at a certain price point ($50/month vs $3k/month) deserve different go to market motions
At least you offer a pricing calculator.
When we are doing vendor research, we often dequeue or deprioritize vendors that do not have any kind of pricing available for the tier we require. Generally speaking, we assume things like volume discounts are available. Also, it's good to get a rough idea of what the delta between "Pro" and "Enterprise" happens to be. Not infrequently the reason that delta isn't available is because it's stupid orders of magnitude different.
If we know that up front, we know not to waste our time tire kicking with a demo account.
So, the middle ground you describes would seem, to me, to be the right place to be. Giving your pricing page a cursory glance, I would rank it pretty highly for the kind of "initial investigation" we might do.
I think from an entrepreneur standpoint, if I see a space with vendors with non-transparent pricing, I often think "there's an opportunity there".
> I think from an entrepreneur standpoint, if I see a space with vendors with non-transparent pricing, I often think "there's an opportunity there".
That makes a ton of sense. IMO, it means one of two things:
* prices are so high because of the cost of goods sold or margins that they'll scare off anyone researching and therefore there might be an 80% solution that can be priced transparently and eat the market
* the company is still exploring pricing and doesn't have a firm grasp on COGS; this means there is some kind of blue ocean opportunity
>2. Know that the pricing is within the ballpark of reasonable given what your product does.
My goto line is "I can get a ballpark estimate for chucking 22 metric tons into low earth orbit, why can't I get a ballpark estimate for your boring enterprise software library licensing?" Links to SpaceX pricing help here.
I'm also a CTO frequently making product decisions, and I refer to it as "Boomer pricing." You want to get on a call with me to assess the size of my company and whether or not I have some bureaucratic, unconcerned entity with an indiscriminate pocketbook. Clear pricing up front, and ideally a pricing calculator, or I don't even consider it.
If I make a product, I don't want you to use it because you found me first and I happened to harangue you on a sales call. I want you to find my product, compare it will full transparency to the other products, and go with mine if it best suits you. Anybody who behaves differently I immediately assume to be behaving in bad faith and is not actually confident in their product on its own merits.
> I want you to find my product, compare it will full transparency to the other products, and go with mine if it best suits you. Anybody who behaves differently I immediately assume to be behaving in bad faith and is not actually confident in their product on its own merits.
Totally agree. I think this why I hated the enterprise sales dance so much -- if somebody doesn't want to buy, I don't want to sell; if they don't know what they're buying, they probably aren't the type of customer I'm looking for i.e. likely to become a support burden.
When my team organizes calls or onsite mtgs with vendors, they always tell them to remove the first 10 slides because we are not interested in why security matters, how it changed over the last 20 years and how great the company is.
They repeat this a few times so that it is clear.
Least week I had a meeting which started with the above, I asked if they knew what we asked, they said yes but they this is very important.
So I stayed, and when the ended the 15 slides with the hi
(sorry, somehow the end vanished)
Do when they ended the 15 slides with their history I left the room.
I find out really annoying when a vendor knows better what we need to hear. But not all are like this, some start by saying that the first 10 slides were removed :)
When evaluating and making purchasing decisions for my security department, I have the same dislike of this approach. And generally for me it is a red flag.
Not (just) because of price gauging, but also because generally it is indicative of a very young company. In many cases they do not want to give the price because they don't know the price; they're still finding out how much they can charge.
To add to those two, I need a working demo (in sandbox of course) of the product without which there's no way for me to validate to what extent your product meets my requirements. It doesn't matter how many screenshots, product explainers, videos you might have put up. Nothing comes close to a sandbox. Trial period is also fine.
I’m a CTO as well and never get on these types of calls to get more details and pricing since they can be such a big waste of time. Someone else from our organization will get on the call instead and then give me the pricing details so we can make a decision.
lol, believe it or not this was an interview question one of my Director of Engineering used to use to sus out the experience of people. As I read the parent comment I was thinking the same thing.
Be careful listening to this kind of advice. You never know what ballpark the "CTO" is playing in.
That’s so true, I have seen a company that offer a chat over Slack, so basically did the entire qualification you mentioned over the chat and gave me some high level data I needed before a full demo call. 2 minutes, no sales fluff. That’s was a nice touch.
Not being upfront about prices is a major red flag, I associate it with someone selling pyramid schemes, or snake oil.
If I ask price and you insist on showing me a presentation to get me hooked and invested, I'm out. At that point you are bound to be talking to a salesman whose job it is to sell and you are experiencing a process that was designed and perfected to manipulate you into buying.
I don't want to buy from salesmen usually, directly from the manufacturer or provider is better, cut the middleman out. OTOH I have to be open to some imperfections, if we have to wait for someone or be inexperienced with sales process (introduction too long), that's fine.
On some industries it's possible for someone to do the work without saying price even. An electrician might be happy to do the work without talking about price, and then you have almost no recourse when it's a shitload.
“Get on a call” is code for “we have commissioned sales people and in order to make that work we can’t let inbound leads from our website bypass them”
> There are numerous products I likely would have purchased, but I either find a substitute or just go without because I won't play the stupid "let's get on a call" game.
> I've rolled-my-own solution more than once as well when there were no other good competitors.
I don't want to be rude but this sounds like terrible business decisions. I would say this is a case of cutting your nose off to spite your face but I suspect it's not your money your wasting rolling-your-own solution. Like it normally costs a lot more in dev resources to build instead of buying. And it seems like your doing it because of your ego and your unwillingness to play stupid games.
That's a significant over-simplification and ends up wrong in many cases. Build vs. buy is largely the same equation as rent vs. own in real estate or automobiles. Generally speaking, in the short term renting is almost always cheaper, but there's a break-even point at which buying (aka building) becomes cheaper. Owning the system also grants considerable ability to build it to be exactly what you need, instead of hacking around deficiencies and/or begging your account manager to get your feature approved and implemented.
There are plenty of situations in which the terrible business decision is to rent instead of build. The difficulty is that without knowing the future it's not always clear, so you have to use your best judgment and hope you get it right.
Edit: Also don't forget that roll-your-own doesn't necessarily mean starting something from scratch. In many cases I opted to use and self-host an open source project that sometimes is sufficient all on its own, and when not we can make changes to it. I almost never start a non-trivial project from scratch just to avoid buying, unless it's a major piece of our product or value proposition in which case you have to consider the risk of building on a foundation you don't control.
> Build vs. buy is largely the same equation as rent vs. own in real estate or automobiles.
I would say this is not a valid analogy. If you buy real estate you have an asset. However, if you build something that is not your core product you have a liability and not an asset. You're not going to get more money because you have a bunch of tech you built that you could have bought.
TLDR; please don't call him, he really doesn't like calls. Must be a gen z
your probably leaving money on the table then
i’d find that unacceptable as a ceo
you got to do the work to do what’s best for the company, not yourself
I see it like this. If the seller can have salespeople waiting on a call, there can be better deals somewhere else. If the seller can have people cold-calling other companies, there most certainly is a better deal around that they don't want me to know about.
Over the years I have developed a salescall aversion to the grade that I hang up as soon as I my unconciousness have detected one. It has gone so far that I have had to apologize to our salespeople calling me and I just hang up by reflex. Very awkward I tell you.
Who knows, maybe there is no better deal, maybe the cold-calling salesman is actually offering the very best deal there is on the market. Then again, maybe the Nigerian prince really needs help with their fortune, and I really just won a car for being the millionth visitor on that news site[0].
Point being, some stranger is calling me and asking for my money. I don't know enough about them to give them money just because they say it's going to be worth it.
--
[0] - https://xkcd.com/570/
But part of doing what's right is considering opportunity cost.
If buying something would be a win for an org takes up too much organizational bandwidth because of how hard it is to procure, then it's not worth fiddling about trying to buy it.
The org gains a whole bunch of time he's not wasting on useless calls.
when your purchasing 100k+ products having a conversation makes a lot of sense
lots of opportunities to find easy win-win
finding out what the salesmen incentives are and working with them can lead to a good outcome
obviously not worth it for smaller ticket stuff
There's a bazillion things we could be thinking about buying.
Being able to serve yourself and figure out if there's any fit removes friction. Spending an hour on an initial sales call to find out that information isn't optimal.
As he's said, when he's desperate, he will do more work. And he is willing to do calls when it makes sense, but expects them to be efficient and expects to be able to qualify the vendor.
This only works if your sales strategy is all about inbound sales, i.e. content marketing (like this article)/ads.
But if you're an enterprise b2b company and want to grow quickly rather than taking 8 years to go beyond 1 solopreneur like this guy you're going to want to do outbound sales.
It's also worth noting that this guys is mostly doing small deals. The literal largest price he has on his pricing page is 72k/yr, which isn't tiny, but his typical deal size is likely much smaller, so it makes total sense for him not to get on a call for $49/month, because that is not a scalable strategy.
But many enterprise b2b companies have a more complicated product than Keygen and charge orders of magnitude more than they do.
Which is not to say that he is wrong, it's just that this is the correct strategy for scaling a low ACV product, rather than a high ACV product. And a low ACV product has to have much broader demand.
We're primarily an enterprise b2b company, so definitely couldn't get away with the "no calls" culture. BUT the "why do calls happen" section is applicable to anyone really.
We need to hop on calls to close customers, but honestly we could probably cut 1/3 of those calls by following some of those suggestions.
i.e. better documentation, ready to go pricing proposals, pre-filled security questionnaires, etc.
"But many enterprise b2b companies have a more complicated product than Keygen and charge orders of magnitude more than they do."
And how a call will make it simpler? Or why a telephone call becomes part of the service provided for the additional (higher) price (instead of other alternatives)?
The more that people spend the more they want to talk to an actual human to make sure their product and psychological needs are taken care of, in terms of being comfortable with the sale mentally too.
Maybe that's true for some people. But there's a lot of frustration being shown here and elsewhere that proves there is a demographic of people who really don't want this.
Cars are similar I think. Sure maybe some people need help. But there's is huge demand for a one-click, no-negotiation car buying "experience" (or lack of experience rather).
My conspiracy theory is that this has more to do with Salespeople and established sales channels (dealers) not being able to understand this both because their job depends on it and because they are naturally people-persons. So it feels intuitive to them and they have trouble understanding/accepting that many other are not.
> And how a call will make it simpler?
Person buying the product has an idea of what they need. The information available within someone's head is naturally going to be much, much greater than any website.
Not to mention, that information can be accessed randomly and immediately. Searching if a product has feature Z is time consuming and you'll probably read about features A-Y. But asking a person can reveal the answer immediately.
It also only works if your product is quite good. I think we can assume a fairly normal distribution for the quality of products where the vast majority are neither very good or bad. An average company with average products will be more inclined to try aggressive sales and marketing tactics because they don't have a great product to help motivate sales.
I'd disagree - at the ends of the curve, there are a lot of products that are effectively identical, at which point it's a race to the bottom on price (often meaning a slow decline in features until things are "cost-optimised") unless they can bring another value-add to the table which is where salespeople come in. Some of the best companies with the best products have extensive sales teams because they don't race to the bottom on price - they outcompete on getting first to market of features that they only get to because they understand their customer pain points deeply and find out when the value add is.
I work in the semiconductor industry. A new chip might be designed to run 500+ different protocols, if not more. Coincidentally I had a meeting with one of our senior fellow lead architects the other day, who said a good 60% of those protocols came from suggestions by the sales team. These were requests by customers with super niche requirements you couldn't even imagine, even if you had an army of postgraduate architects who spend all day reading papers (which would be prohibitively expensive). Sure, a chip designer might know to put the latest USB standard on it. They might not know about some obscure broadcast protocol used by only 4 or 5 companies but is the backbone for almost every Premier League football game you watch on TV.
Good products are often only good because the sales team was out there trying their hardest to start a dialogue with a customer to win business, and in doing so listened to them and acted on that.
Love this anecdote. Having a really capable sales team that actually listens to customers unique needs, and feeds that back into a better product can be such a huge asset. Your sales team is usually a huge repository of unique customer pain and problems (opportunities!)
I disagree, almost all products are intentionally bad and only continue to get worse. Ironically, it's due to the free market.
There's too much competition in virtually all product spaces and so these products have to compete on price. The idealized free market philosophy is that consumers will buy higher quality products, but they don't, they almost always buy cheaper products. Any "quality" improvement is therefore used to make the product cheaper, not better. For example, if you design a new material that's 20% stronger then your product does not become 20% stronger, rather you use 20% less material.
But even that is just a break even approach, which doesn't actually work for very long. Your competitors are actively cutting quality, so if you're just breaking even then you're on your way out. So why don't customers buy from you?
Because of the limitations of humans. Humans can't perceive small differences and humans are forgetful. It's safe to cut quality by, say, 1% every year forever. Nobody notices from point A to B, and then by the time they're comparing Z to A they don't really remember A.
There exists a short period of time, perhaps a couple decades maximum, where a product category is getting better and higher quality. From then on until the absolute end of that product, they can only get worse in quality. The exception is products that are exempt from the free market for one reason or another.
People buy 100k cars online nowadays, why wouldn’t a great online presence also work?
A 100K car is a commodity product with very limited customization.
If you don't like the car, the manufacturer is not going to make a new one for you personally.
A large SaaS customer is the opposite.
You can go to the Porsche configurator website and design a personally customized globally unique $300K+ car, and it shows you not only the price but also what it'll look like. So there's obviously nothing _technical_ preventing them from letting people just order online, like with Tesla. Frustratingly, you have to still go into a dealer for them to click the submit order button, and they might add a markup for this privilege despite them adding negative value to the experience. It is just as frustrating as B2B sales. I'm sure some buyers want to speak to a human, but enthusiasts tend to know exactly what they want and they dread having to "build a relationship" and wonder if they got screwed because they didn't negotiate hard enough / aren't good-looking enough / etc.
As for B2B sales, if AWS can show their pricing online, which has to be among the most complex pricing in existence - then so can every other SaaS company.
> If you don't like the car, the manufacturer is not going to make a new one for you personally.
Yes, they will. I recall watching a whole kind of documentary of it somewhere on Youtube. Essentially, luxury brands will fully customize cars for customers and have calls/meetings with them to discuss how the car will be customized. It costs $$$$$ but they'll do it.
I think, too, that more important than income is the fact that these rich people should be driving their cars. It's a way to keep the brand positioned in that market.
So you agree that when companies want to truly give a customized experience to their customers, they would get on a call with them? I guess we are on the same page then.
In most of these discussions, people on the sales side claim, "but our customers WANT this! Trust us!" and most of the people on the buying side scream, "We hate this. Please let us buy it without this song and dance." It's a shocking disconnect to me. (For what it's worth, I'm squarely on the fouder/engineering buying side and hate the call song and dance, and only engage in it as a last resort.)
Parting thought: SpaceX tells you how much it costs to ship something INTO SPACE. I bet you can figure out a way to tell me your SaaS price, in ballpark terms, and what it depends upon...
The disconnect has such a simple explanation that it's brutal how long this conversation is: nobody wants to make stuff for cheap people, and people who hate calls are really cheap.
Assume the price is too high for you if you have to talk to sales and go some where else, simple as that?
I agree with you on three things:
1) I agree that there are markets where "if you have to ask, you can't afford it." (However, I think those are extremely rare, and don't believe Enterprise software, even expensive enterprise software, is usually one of those markets.)
2) I agree that "cheap" people who are unwilling to buy expensive software are likely going to "hate calls."
3) I also believe it is true that, "If a potential buyer is willing to go through the time and effort to schedule a call, even before they know if the product will work, and even before they know what it costs, they are MUCH more likely to be able to afford it than someone unwilling to do that."
But that doesn't mean that potential buyers who "hate calls" and prefer to know what something costs before-hand are "cheap." Many very expensive products list the price (or at least the maximum price, right on the website): [Luxury cars](https://www.mbusa.com/en/vehicles/build/g-class/suv), [Mansions](https://www.zillow.com/homedetails/1900-Spindrift-Dr-La-Joll...)...
I don't think Tesla customers are "cheap". Not only is the price is right on the website, you can [buy it in a few clicks](https://www.tesla.com/models/design#overview). That's not because their target market is "cheap people who hate calls". (Also, have you ever spoken to a Tesla buyer who wishes they could have had a call with a car salesman first?)
I don't think people who buy multi-million dollar homes are "cheap". The starting (maximum) price is listed right there. I can't imagine that someone thinking, "I wonder how much are they asking for that 20 room mansion?" is a signal that they are "cheap."
I can see the value in not wasting a seller's time with cheap people who will be crappy customers. I think you could do it just as easily by clearly stating ballpark prices and/or the components of prices up front, rather than gating it solely based on whether someone is willing to schedule a call.
This is exactly what mediocre salespeople tell their bosses to keep their jobs.
It is, to put it politely, horseshit.
I love that SpaceX does that, because it proves once and for all that the sales tactic of "we need to know the details of your use case" is a lie. Some B2B software application is less complicated than launching things into space, so if SpaceX can provide pricing anyone can. They simply choose not to because they're hoping to waste your time and get you to succumb to the sunk cost fallacy.
It's worth noting that prior to SpaceX every single rocket was hand crafted, and often varied in key details based on the payload. Certain when it came to (people-intensive) integration tests and launch prep work. There's partly a legitimate reason ULA needed customer details before providing a quote.
But mostly it was so they could charge NRO more for their birds, by not having a price on their website.
> SpaceX tells you how much it costs to ship something INTO SPACE.
Not just that, they also plain tell you how much it costs to buy an entire rocket launch for yourself.
https://www.spacex.com/media/Capabilities&Services.pdf
To save a click, that PDF at this moment says clearly:
STANDARD PAYMENT PLAN [for Falcon 9] (through 2024) $69.75 M Up to 5.5 mT TO GTO
If they can put a specific base price on their website, so can any SaaS.
You can put the 7 figure price on your webpage but I assure you that no one will pay it without taking to you in person…
> I bet you can figure out a way to tell me your SaaS price, in ballpark terms, and what it depends upon...
They can't if the price is arbitrary and subject to negotiation, like a car at a dealership. Not saying that happens everywhere or even most places, but it's one explanation.
This is true! And frankly, it's the most likely explanation. Even then, I'd appreciate a "starting/maximum" price (which is what car dealerships and home listings do). "This is the price, unless you want to spend the time trying to negotiate it down..."
If the pricing is made up of a number of complicated usage components, it would be great to give both a ballpark for a given description of usage, and a brief explanation as to what goes into the price.
I think sellers either forget how much more information they have than the buyer, or know, and try to take advantage of it.
One of the best conference talks I ever saw was from a pool contractor explaining that it is indeed hard to answer the question, "How much does a pool cost?" because it can vary SO MUCH. But he found that explaining the components of pricing, along with examples and ballparks, was more than sufficient, and that his business took off as a result of publishing that information, rather than hiding it behind a sales call. (Looked it up - this is not the exact talk I saw, but it was this guy: https://blog.hubspot.com/opinion/uattr/marcus-sheridan-hubsp...)
I was once involved in a purchase for SonarQube for a bigger company (around 50-200 developers using it). It was just a horrible experience. My task was just to evaluate the software in a smaller team, get some evaluation licenses and write a report what our experience was.
It was a crazy ride, I got a sales person assigned, and this person kept asking me questions I couldn't answer. I kept telling them what my job was, and if my report would be positive they might be able to sell 50-200 developer licenses. But they kept pushing me to answer business questions I couldn't answer. It's not my job to know that stuff, and I wasn't allowed to share information about company internals to a third party.
In the end our team never completed that report, and I just put this sales person into all my block lists. Never heard from them again ;)
I was never really sure if they were scared we would abuse an evaluation license, but it was a reputable company (nothing shady at all, no US sanctions, nothing). Even if they had no idea about the market we were in, just reading the Wikipedia article about the company would've shown them, that this is someone they would probably like to be in business with.
We needed to test the integration into the company CI pipeline. One of the requirements was to fully run it in a private cloud environment, maybe even without internet access (this was required for some projects for security reasons).
PS: but that's not the point. We needed an evaluation license, but the sales person just kept bugging us with questions. Like how our environments were set up, what products we want to integrate it with, how our teams are build, how much team growth was planned, and so on.
A lot of internal things that you don't want to share, especially if you are not part of the purchasing department. They probably have some guidelines what they are willing to share and what not. Even when putting aside the security risks by sharing internal information, it could also hurt the purchasing departments negotiation strategies, if the sales person already knows more than they shared with them.
PPS: We didn't want to have SonarQube at all, we didn't like the reports at all, mostly false positives in our case to work through (but I can see that some teams could benefit from it). The requirement came from some check boxes to be ticked for an audit.
It depends on the evaluation needed. Maybe they wanted to verify that SonarQube would be able to handle their code structure, but they also had requirements that it has to work locally only and they couldn’t send proprietary code to a SaaS. You can’t evaluate that using SonarCloud, but a couple days with an evaluation license are exactly what you need.
I had a similar buying experience recently, where a SaaS had a cloud option and a local option, which varied slightly. The cloud option kind of told us what we needed to know, but a trial license of the local option let us actually verify that it would work with our use case.
I'm a CTO who makes purchasing decisions. There are numerous products I likely would have purchased, but I either find a substitute or just go without because I won't play the stupid "let's get on a call" game.
If your website doesn't give me enough information to:
1. Know enough about your product to know that it will (generally speaking) meet my needs/requirements.
2. Know that the pricing is within the ballpark of reasonable given what your product does.
Then I will move on (unless I'm really desparate, which I assure you is rarely the case). I've rolled-my-own solution more than once as well when there were no other good competitors.
That's not to say that calls never work or don't have a place, because they definitely do. The key to using the call successfully (with me at least) is to use the call to get into true details about my needs, after I know that you're at least in the ballpark. Additionally, the call should be done efficiently. We don't need a 15 minute introduction and overview about you. We don't need a bunch of small talk about weather or sports. 2 minutes of that is ok, or when waiting for additional people to join the call, but beyond that I have things to do.
I know what my needs are. I understand you need some context on my company and needs in order to push useful information forward, and I also understand that many potential customers will not take the lead in asking questions and providing that context, but the sooner you take the temperature and adjust, the better. Also, you can get pretty far as a salesperson if you just spend 5 minutes looking at our website before the call! Then you don't have to ask basic questions about what we do. If you're willing to invest in the time to get on a call, then it's worth a few minutes of time before-hand to look at our website.