Pricing in IT: Is Cost Plus the Only Way? with Love Sanoria

Love Sanoria is the Director of Operations at ChargePoint. He is also a Professionally Qualified Senior Finance business partner adept at increasing profitability, having significant all-round corporate experience of 16+ years in Finance & Accounts domain. He is a subject matter expert in creating processes for driving financial forecast & annual budget for the organization in collaboration with multiple teams. In this episode, Love talks about what IT pricing is all about, though it may be based on what the costs are but it is never about not putting concern over quality first for as to him quality never comes cheap. He points the fact on how a company’s IT landscape determines its subscription need. He also shares how COVID will increase pricing due to expenses and losses incurred by companies at this time of the pandemic.   Why you have to check out today’s podcast: Learn how to charge your product based on the level of differentiation, how better your product is from your competition Learn what is COVID pricing and how it affects future pricing Understand how IT pricing is arrived at   “If you understand the business, then pricing is a derivative of that. So, if you understand what are the cost elements to it, you will be able to do the pricing.” - Love Sanoria   Increase Your Pricing Knowledge: Become a Champions of Value INSIDER! To sign up go to insider.championsofvalue.com   Topics Covered: 01:00 - What made Love consider Pricing 01:54 - How does Revenue Assurance differ from Pricing 03:38 - Looking at cash and revenue from the accounting standpoint 04:44 - Does it happen that transaction in million dollars not paid 05:08 - What is IT pricing 08:55 - His thoughts on pricing based on customers’ willingness to pay and not about the cost 11:39 - Quality never come cheap 13:54 - How a company’s IT landscape determines subscription needs of companies 15:30 - How people wouldn’t mind spending something just to keep things as it is 17:00 - How has COVID hurt the IT industry and how it affects future pricing 18:20 - How prices are going higher not because of consumer’s willingness to pay but because companies expenses have gone up    Key Takeaways: “I would say pricing comes... might be at a second, third level, but quality comes at first but given the transparency of the process in the big companies, it adds a weightage to your overall budget from the customer perspective.” - Love Sanoria “Think from a vendor perspective, no one wants to lose a deal from high price perspective, given the very competitive scenario.”  - Love Sanoria “There are different vendors. And if you talk about vendor, they have different cost strategies as well. They have different quality. But if a customer wants to choose the high quality, they have to pay the high price, quality never comes cheap.”  - Love Sanoria “COVID has hurt, I would say, the IT industry, generally a lot. Obviously, they have their margin pressure, they have cost pressure, it will bounce back, once it bounced back, they will obviously charge back from their customer.” - Love Sanoria   Connect with Love Sanoria: LinkedIn   Connect with Mark Stiving:    Email: [email protected] LinkedIn