Commoditization in tech is more real than admitted

Investing or owning a growth tech company?
When does your product becomes close enough to your competition that customers start to buy on price alone?

Looking over the margin wall is more relevant than ever on technology acquisition or investment.

Tech is not immune to commoditization.

Despite all your exciting features, the customer is still just going to use the product to do. So, when they go to buy the next product, they choose the one that can do those basics at the lowest Price. Even if a tech executive does realize it about their own company’s products, they are not likely to admit it publicly.

Today Tech companies need to focus on higher levels of product consumption restoring profitable growth.

A simple “per user, per month” math is just an initial salvo for SaaS models.

Think about:

  1. Conduct a ruthless competitor benchmark
  2. Customer one on one feedback
  3. Introduce asap a global pricing book
  4. Build a pricing supporting your company scalability with alternatives such as:
  • per user per month x number of modules
  • feature level per each module
  • number of content subscription services per module
  • number of reports/ or premium content downloads