The price is per seat. The value is per transaction.

The unit you charge for decides the shape of your revenue curve, and most firms inherited theirs rather than chose it.

By Steve 5 min read
Abstract bridge artwork for The price is per seat. The value is per transaction.

A software business charges £40 per user per month. Its best customer has forty licences and pushes eleven thousand transactions a month through the platform. Its worst customer has thirty-eight licences and pushes ninety. Both pay roughly the same. When the good customer doubles its volume next year, the invoice does not move. When the price rise comes, both fight it equally hard, and only one of them has a case. This is not a pricing level problem. Nothing about raising the £40 fixes it. It is a problem with…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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