Stop hiding your pricing because you think your product is too expensive

The topic of pricing (showing vs hiding) came up recently and I wanted to share the experience both as a founder and as someone who has extensive experience vetting and buying SaaS products for enterprise companies.

Here's the thing: in all cases, price matters. Hiding your price is costing you sales.

If I don't see pricing, I immediately think 'they are only looking for Enterprise sales' as a founder.

If I'm repping an enterprise, lack of pricing transparency is a red flag. In those cases, I still have to present cost differences between options to others before setting up a demo. Of course enterprise pricing can be fluid, but even showing examples of 'x number of users cost y per user' is helpful. No pricing is a good way to just not even be considered.

Why hide pricing? The only reason (so it would appear) is that you're afraid your pricing will scare people away because it's so high. Or you think that the price is high, but you can convince people it's acceptable if you can get them on a call/Zoom etc. But the offer should be clear in the value. Hiding pricing costs sales - people who balk at the price are balking at the offer. The offer doesn't match up to the value for them.

If a company thinks their own pricing is too expensive, that makes me think they already believe they are charging too much. Nobody has to guess of the price of a Rolls Royce, because RR believes their cars are worth the price, and are completely open about it. A Rolls Royce Phantom has an MSRP of $455,000. Not cheap, but not hidden.

Consider this: a great offer isn't expensive. It's a no-brainer. If I show you a product that will add $500,000 annual revenue to your bottom line, and that money is proven, reliable flow of cash, how much is that product worth? $20k? $50K? Even $100,000 price to bring in $500,000 annually is a steal.

So hiding the price means you know (or you believe) your offer isn't good enough, and you're hoping to lure in people and then convince them after they've 'kicked the tires'. You are hoping to talk them into buying, when you should be focused on letting them talk themselves into buying.

Showing the price means you immediately avoid anyone who isn't going to become your customer. Please believe me when I say even huge, enterprise buyers do not have blank checks. The buying process may be bureaucratic and seem like an arcane blend of sorcery and voodoo, but to make a sale at an enterprise with no prior connection on the inside, you need to get past the initial gatekeepers who compile a list of competing products. On that list will include features, how established the company is, what Gartner thinks (eye roll for Gartner – that's a whole other topic) and how much the product costs for comparison. You don't show a cost? You'll probably get eliminated pretty quick. You might get eliminated if you show the price, but that's because your offer doesn't match what the company wants, or you aren't presenting the offer correctly.

A little about me: I've founded two companies, and exited one. Now I'm building Atomic Republic where we work to help founders find profitable markets (markets, not ideas) and then grow them. You can also complain at me on Twitter @m_shockley.