by
Zach Weinstein
July 25, 2024
A Quote isn’t just a "legal" document outlining what your customer gets and what they pay for; it's also a Sales and Marketing document. This post will focus on the Sales aspect, and I'll cover the Marketing side in a separate post.
While the importance of a professional look and clear, simple content is obvious, let's dive into why limiting negotiation room is crucial.
Refer to this previous LinkedIn Post about "package stuffing," which involves adding features your customer may not want to justify a higher price.
When you present these features as separate line items with individual prices, you give your customer leverage to negotiate by asking to remove certain features.
For example, consider Notion's Plus package, which costs $10/seat/month and includes:
On a Quote, it's best practice to show a single price for Notion Plus ($10/seat/month) and reference a website or attached document for the feature details. The worst approach is listing all the features as separate line items and dividing the $10 price among them.
What might customers say if you do this?
Entitlement Provisioning is critical. But it should not be confused with the line items you shown on the Quote document.
It is best practice to maintain a separate entitlements table that maps each of your customer-facing products (i.e., the Quote line items) to a set of entitlements in your product. As your products evolve, update customer Contracts through Amendments to move them to new versions of your customer-facing product with different entitlements.
Package stuffing can feel like receiving a lump of coal in a stocking—disappointing and unwelcome.
Avoid opening the door to unnecessary price negotiations. Treat your quote document as a polished presentation of your company's offerings, not just a legal formality.
About MonetizeNow
Founded in 2021, MonetizeNow is revolutionizing GTM operations for B2B SaaS Enterprises of any size. At MonetizeNow, our mission is simple: to make B2B commerce completely frictionless and provide a delightful experience for your customers to do business with you.
Our innovative platform combines Quoting/CPQ, Metering, Billing, and Reporting, to deliver a truly plug-and-play Quote-to-Cash experience across all sales channels.
It’s time to empower your Sales, RevOps, and Finance teams with an all-in-one solution that will revolutionize your entire business. Reduce manual tasks, allowing a stronger focus on strategic pricing and innovative GTM strategies. Generate complex quotes quickly and enjoy full automation of your billing processes. Easily handle proration, co-term agreements, and renewals for seamless operations.
Get back to focusing on value. If you can build it, you can sell it with MonetizeNow.