In today’s competitive market, contract management software has become a necessity for businesses of all sizes. Contract management is essential for companies that deal in recurring business operations, and contract management software or agile framework has become a central pillar of modern contracting.
Luckily, most contract management software solutions provide users with robust functionality at prices that are within reach of most small and medium-sized businesses. This article identifies pricing strategies and features offered by contract management software that can help you discover the best solution for your company’s needs.
Decide What Features You Need in a Contract Management Software
If you’re still in the process of choosing contract management software, it’s a great idea to first identify the features you’ll need and how they’ll help you manage your business. Contract management software might seem like a one-stop solution for all of your contracting needs, but that may not be the case for your organization. Do a full analysis of your operations to determine the specific features you need, and be sure to consider other factors like the ease of training employees, integration options, and ease of use. You might also want to consider the types of contracts you deal with and the volume of these contracts relative to your overall operations. Certain features, like collaboration, might be more important to your operations than others. You might also want to review other key business processes that can benefit from the help of contract management software, like workflow and document digitization.
Find Out How Much Contract Management Software Should Cost
Once you’ve identified the features you need, you’ll have the opportunity to research pricing strategies and see what other companies charge for these features. Depending on the software you choose, pricing may be determined by a number of factors. Some companies will charge a monthly subscription, while others might charge a one-time fee. Some contract management software companies also offer volume discounts, so be sure to find out how much you’d save if you were to sign up for a large volume of contracts. You should also look into how contract management software compares on price to other key business functions. Some contract management software companies also offer price comparisons to other key functions, like accounting and human resources software. This can help you determine where contract management software sits in the cloud ecosystem, and how it compares to other solutions in the market.
Understand Why Software Companies Charge What They Do
While the price of a contract management software is often determined by factors like the number of users and volume discounts, it’s important to understand why a company is charging what they are. The bulk of a software company’s revenue comes from one thing: selling software. Software companies have many revenue streams. Some of these include subscriptions and upsells. With upsells, a software company might try to convince you to upgrade to a larger plan once you’ve already committed to a certain size of the plan. Upsells are a way to increase the revenue of a software company. What’s important to understand is that a software company will charge you for the features you don’t use and might never use. The more expensive the features are, the less likely you are to use them.
Contract Management Software Pricing Strategies
As you begin to research pricing strategies, you’ll quickly discover that no two companies charge the same price for the same features. Pricing is an important part of revenue generation, and software companies have been marketing to users based on pricing strategies for decades. So what are the best ways to price a contract management software? One pricing strategy is cost-plus pricing. This strategy is rooted in the concept of supply and demand, and it relies on the idea that users will choose a lower-priced solution when there’s a high demand for services and a higher-priced solution when there’s a low demand for services. The cost-plus model is best used when comparing an expensive solution to a cheaper one. If you were comparing a $500 contract management solution to a $300 contract management solution, you should look at the features and determine if the cheaper option is as good as the more expensive one.
Choosing the perfect contract management software for your business can seem daunting, especially when it comes to pricing and features. Fortunately, this chapter has provided you with insights into the best practices. Make sure to keep these in mind as you choose your contract management software. As you begin your research, try to identify the specific features you need in your contract management solution.
You should also consider other key business functions and processes that can benefit from the help of contract management software, like workflow and document digitization. Once you’ve identified the features you need and how they’ll help you, try to find out how much contract management software should cost and why a company is charging what they are.