TFC #43: How To Respond To a Price Increase

Success in software isn't about frozen prices; it's about innovation that propels your business forward.

Author

Myron Wittmer
December 08, 2023

Ready to rally with pitchforks over soaring software prices?

Hold off—the surprising truth might just turn your anger into applause.

Change can be frustrating, especially when it hits our pockets. However, sometimes change brings forth opportunities that, upon closer inspection, might actually be in our best interest.

Let's take, for example, when a piece of software that is critical to your business increases its price.

This could mean your manufacturing software, such as Cabinet Vision or Mozaik; accounting software, such as Quickbooks; customer management software, such as Hubspot; or anything else that helps your business function daily.

While it’s easy to perceive this as a negative move, let’s explore why this might be the catalyst for a better future for us all.

Bleak Blake

When stuff gets more expensive, our first thought is usually that the people selling it just want more money.

It's like a reflex—we see the price go up, and we think they're being greedy.

Here is how “Bleak Blake” might respond to a price increase:

Hey man, I've got some frustrating news to share. Recently, my software expenses unexpectedly skyrocketed. It's as if they assume we're all swimming in wealth.

There wasn't any prior warning or explanation—just a sudden hit to our budgets.

It's almost as if their focus is solely on emptying our pockets without considering the consequences.

It's a bit baffling, to be honest.

Bleak Blake

Sunny Sam

When a software company raises prices, it can signify a commitment to enhancing the tools that are critical to our business.

Improvements and innovations in software don’t come without investment.

Just like our craftsmanship requires top-quality machinery, materials, and skills, developing superior software requires a lot of resources.

When a software company increases pricing, it can signal a dedication to research, development, and crucially, customer support.

Here is how “Sunny Sam” might respond to a price increase:

Hey, just a heads up—software costs just went up unexpectedly.

It's a surprise, but remember, these shifts often signal something bigger brewing.

It's not just about the price; it's about what it means for the software's evolution.

Maybe this uptick is their way of gearing up for innovative upgrades, investing in research, development, and better customer support.

This twist might just be the launching pad for advancements that truly transform how we work.

Let's stay open-minded and watch closely for the silver lining!

Sunny Sam

Conclusion

In the world of business, relying on healthy and thriving companies is crucial, especially when it concerns our critical software.

Imagine a software company barely getting by, struggling to make ends meet. Now, imagine relying on their software to drive our businesses forward.

There's a stark reality here—where there's barely any room for innovation, for improvements that can revolutionize how we work.

That's why these price increases, though initially frustrating, might be more than just a greedy decision.

They could signify a company's commitment to its growth, and to investing in research, development, and support.

We all benefit when the tools we rely on are backed by thriving companies dedicated to enhancing what they offer.

The general rule of thumb is this:

higher price = higher level of service

We expose what is more important to us by how we respond.

Choosing software based on price alone is a journey that loops in circles, never leading forward.

I’ve certainly spent a fair amount on Cabinet Vision and other software this year and I’m not even building cabinets, but I’m not upset about it. Instead, I’m glad to be supporting a company that has impressed me with its innovation, and I’m betting on them to continue to make it better and better.

Final thought I want to leave you with.

Success in software isn't about frozen prices; it's about innovation that propels your business forward.

Is your software doing that for you?

Spoiler alert, I’m guessing it is.

Thanks for reading,
Myron