An international firm was introducing a new turnkey subscription-based program that included hardware, software and educational content.  Pricing needed to generate profit while including the cost of hardware maintenance.  The Executives were seeking some means for sales personnel to provide a preliminary quotation to the customer in the field that was reliably consistent across all sales representatives while ensuring acceptable profit.


The broad Executive mandate for a turnkey subscription program pricing approach was used to create a document that stated the underlying pricing principles.  The pricing principles document was circulated in-house to explain to internal stakeholders how the principles may be applied by an Excel spreadsheet to generate pricing with acceptable profit across the many different program configurations that the customer may request and gain support.


Over weeks of iteration, trial quotes were reviewed by sales management and the Executives to ensure that the Excel tool was properly following the pricing principles — and that the pricing principles were sufficiently robust to generate acceptable pricing and profitability.  Safeguards were programmed into the Excel tool to ensure that sales representatives could not inadvertently exceed guidelines and generate unacceptable pricing.


The pricing tool is the sole instrument used by sales personnel, reliably creating uniform quotations while ensuring acceptable profitability. The tool has been further augmented to generate different types of quote, including extensions to service during the term of coverage, and renewal at the end of term. An international version of the pricing tool was also developed and permits customization by local market that includes currency, list price, costs, discounts and language labels.