Reconsider your “no prices on the website” policy

The importance of pricing in the purchasing process is undeniable. Tenders focus on finding the best price-to-quality ratio, often heavily weighting lower prices. In the marketing mix, price stands alongside product, place, and promotion as a core component.

Yet, many software companies opt to keep their prices off their websites. They worry about competitors seeing their rates or losing the ability to offer different prices to different clients – an open secret in the industry. However, I often advise companies to include a pricing page or at least package information on their site. Let me walk you through my reasoning.

The Risk of Hiding Your Prices

Recently, I spoke with a software company CEO who was questioning their marketing strategy. Based on their website, I assumed they were selling an exclusive product aimed at larger corporations. In reality, their solution was perfect for small businesses and priced at just €30 per month – incredibly accessible.

This struck me as a major missed opportunity. While an exclusive, high-end image can be effective in some cases, I believe they were losing out on numerous potential customers. Imagine running a targeted LinkedIn campaign that drives traffic to your site, only to have interested leads scared off by the lack of pricing information.

I’ve seen the opposite scenario play out as well. At ForwardKeys, we offered a premium product that required significant investment, both in terms of the data cost and the resources needed to leverage it effectively. Despite this, we frequently received demo requests from prospects who clearly lacked the necessary budget. These leads were unlikely to see a positive ROI from our offering.

Nevertheless, our sales team often scheduled calls with these prospects. This approach wasted time and resources. Some argue that you never know who these individuals might connect with later, potentially leading to future business. However, I’ve been on the other side of this equation – ignored after requesting a demo – and it left a sour taste in my mouth.

What the Data Says About Pricing Pages

HockeyStack, a data analysis tool for marketers, conducted a study of 80 SaaS product websites, focusing on the impact of pricing pages. Their findings are revealing:

• Pages displaying prices have a bounce rate of 39% – significantly lower than the site-wide average. High bounce rates often indicate that visitors aren’t finding the information they seek.
• When pricing pages show packages but not specific prices, 64% more visitors complete contact forms – likely hoping to access pricing details. However, when actual prices are displayed, those potential customers are 70% more likely to become qualified leads.

It’s important to note that this data typically comes from companies with high website traffic. If you’re only receiving a handful of inquiries each month, don’t expect a 70% conversion boost simply by adding prices to your site. The sample size is too small for such dramatic results – but the principle remains important.

The Trust Factor: Especially Critical for Security Companies

Beyond conversion rates, consider what your pricing strategy communicates about your company. Trust and transparency are paramount, particularly in the security sector. Through our Security Innovation Stories interviews with CISOs, a common complaint emerges: vendors often lack transparency about their products’ capabilities and limitations. How many alerts does the system generate? What percentage are false positives?

This begs the question: If you can’t be upfront about your pricing, what message does that send about your overall transparency?

Options for Pricing Transparency

While I generally advocate for displaying prices directly on your website, I recognize that this isn’t always feasible, especially for complex security solutions or consultancy-style services. In the HockeyStack study mentioned earlier, Canberk Beker, Head of Growth, challenged the notion that pricing pages must always show exact figures. Here are some alternatives to consider:

Detailed Price Structure

Offer a breakdown of how your pricing is calculated. For a security company, this might include costs for firewalls, antivirus software, monitoring services, and personnel. This approach helps customers understand where their money goes and allows them to tailor services to their needs and budget.

“Starting From” Prices

Provide a base price for your simplest offering. For example: “SME Security Solutions starting at €500/month”. This gives prospects a ballpark figure without locking you into specific pricing, leaving room for customization and upsells.

Approximate Pricing

Take a cue from Eye Security’s approach. They list a base price (€8.99 per device per month for monitoring and response) but clarify that this can vary based on factors like language support needs or additional services such as e-learning access or phishing simulations. This strategy offers transparency while maintaining flexibility.

Package Tiers (Without Specific Prices)

Even if you’re not comfortable sharing exact figures, outlining your service tiers can be immensely helpful. Define packages like “Basic”, “Advanced”, and “Enterprise”, detailing the features included in each. Explain the factors that influence pricing, such as user count, data volume, or incident response time. This approach educates prospects on your value proposition without committing to specific numbers.

The Case for Pricing Transparency

Ultimately, being open about your pricing builds trust with potential customers. In the security industry, where trust is everything, this transparency isn’t just a marketing tactic – it’s a reflection of your business ethics. It empowers prospects to make informed decisions and lays the groundwork for lasting partnerships.

By putting your pricing structure (if not exact prices) on your website, you:

1. Filter out unqualified leads, saving time for both parties
2. Demonstrate confidence in your offering
3. Set realistic expectations from the outset
4. Distinguish yourself from less forthcoming competitors

While there may be valid reasons to withhold exact pricing in some cases, there are always ways to increase transparency. Whether you opt for “starting from” prices, ballpark figures, or simply a clear explanation of your pricing model, each step towards openness builds credibility with potential clients.

In the world of cybersecurity, where trust is paramount, pricing transparency can be a powerful differentiator. It sets the tone for honest communication even before that first sales call, positioning you as a forthright and reliable partner in an industry where those qualities are invaluable.