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  • Writer's pictureRoss Bright

Salesforce announces 9% price increase on all core products, and how to avoid it.

In a recent press announcement Salesforce has increased their prices across a number of products by 9%.

This increase so they say is due to large investment in generative AI related research and development. However is this really the full story?

It's safe to say that inflation and pressure to produce profits in new ways has it the entire SAAS sector, and Salesforce is no different.

As one of the "stickiest" software platforms out there if anyone can get away with a profitable price increase it is Salesforce. They know how expensive and time consuming it is to migrate. They do however put their net new pipeline at risk to competition with other companies. Perhaps renewals have less leverage.

At Smartcost we're ensuring our clients stay informed with this new update so whether its at new purchase, user expansion, or a simple renewal you're not hit with this increase.

We've been successful so far in helping clients avoid price increases by:

  • Being prepared with data in advance of renewal

  • Keeping your options open

  • Understanding the language in your contract

  • Understanding the propensity of Salesforce to negotiate based on your unique situation and their parameters.

Please reach out to us if you have any questions about the potential price increases at your company, or in a new evaluation.

We're here to help and want to save you money! Don't let the "big guys" win this round by default.

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