How often do you revise Support Services pricing?

BrianFady

There is plenty of information and strategies to consider on how to price Support Services. What I see far less of is how often organizations are revising Support Services prices, and by how much.

Do your organizations revisit and revise pricing annually? every other year? only when the offer portfolio changes (new offers, new deliverables, new service levels, etc)? as or when needed driven by margin and revenue? in response to competitor or industry and market changes?

And if your organization has adopted a practice of regularly occurring price changes, have you adopted customer predictable or standard amounts, for example annually and tied to Consumer Price Index (CPI) changes, or by X%, or is it more typically re-evaluating cost to serve, competitive analysis, broader business portfolio strategies at the time etc?

At the moment, I am most interested in Service Attach offers tied to HW or HW+SW solutions but welcome comments on any of the common Support Services models.

Lastly, if you don't mind sharing what industry your comments reflect, that'd be very useful context as well (eg: Networking and Telecommunications technology companies, Service Providers (B2B or B2C), Consumer technology or Services, Healthcare or Medical Devices, etc.).

Thank you!

Edly Villanueva

Hello @BrianFady

Great questions you have posed to the TSIA Exchange community regarding “Revising Support Services prices for Service Attach offers for HW or AHW-SW solutions”.  A lot to cover here, let me pull in our TSIA Exchange founders and active members in the Support Services community for their insights on this topic.

Hi @Alexander Mundorff @Daniel Coullet @Joseph Reifel @Lane Giles @SorenMarklund @SteveCloughesy @SumitBhat @StephenSpence @JimBignell @Dan Lopez reaching out to your for your thoughts and experience on this topic.

In addition, I'm adding our research executives to also weigh in on this topic: @Vele Galovski @SaraJohnson @DavidBaca @Hal Stanley

Thank you for leveraging the TSIA Exchange!

Edly

Jim Bignell

Hi Brian, for Services attach offers it’s typically every 1-2 years driven by all the factors you listed above, portfolio changes, margin considerations etc. A number of our Services attach offers are annuity offerings so that impacts our ability to implement changes based on existing customer commitments. Support is also subject to a percentage annual increase which is linked to the CPI.

SteveCloughesy

Hi Brian,

We review and adjust our pricing on Support once a year. This is based on CPI, competitive landscape, and industry standards. Like @JimBignell indicated portfolio changes, and margin also play a part. In the HW platform and associated SW world our contracts also tend to be an average 3 year duration so price changes can only be implemented at renewal time. In the cloud and pure SW product space the Support follows the subscription which may be anywhere from a month to a year so the revenue from a price change follows more quickly.

I work in the CyberSecurity industry if that is what you are looking for.

Hope that helps.