When Your Early Adopters Lie About Buying Your Software
Learn the value of getting customer commitments and buy-in during software development from early adopter pain. Discover how seeking out valuable feedback can spoil you with success!
When you’re a founder, it’s easy to get caught up in the excitement of building a new software product for customers. But before you dive too deep into the development process, have you discussed pricing and buying commitments? This is an essential part of customer discovery that often gets overlooked — but it shouldn’t. After all, nobody likes being left high and dry after pouring their heart and soul into creating something amazing. It has happened to a recent portfolio company of mine.
The Value Of Discussing Pricing Early On In The Conversation
When it comes to pricing and buying commitments, the earlier you bring it up in the conversation with your customer, the better. This allows you to set expectations early on and make sure that everyone is on the same page when it comes to what they can expect from your product and what they’ll be paying for it. Bringing up pricing early eliminates any surprises later on down the line, which makes it easier for everyone involved to make informed decisions about their purchase. This brings up a great deal of fear and uncertainty but they call this customer group early adopters for a reason. One of the best talks I have heard on this concept is with Madhavan Ramanujam on the podcast Invest Like the Best. He wrote a great book called Monetizing Innovation.
What To Ask During The Conversation
So what should founders ask during these conversations? It's important to ask questions like “What are your budget parameters?” or “What type of commitment do you need from us as a vendor?” These questions will help you understand exactly what your customers are expecting from both sides of the relationship so that there are no misunderstandings later on down the line. It also allows founders to negotiate better deals with larger clients who may be looking for more than just a one-time purchase. These are serious questions that really separate real buyers vs. people that are just placating you.
Why Commitments Are Important For Founders
Asking for commitments upfront helps founders avoid getting into sticky situations later on down the road. It ensures that customers don't back out of their purchases once they've seen what your product can do and how much value it brings them. Making sure this happens at an early stage also allows founders to plan ahead financially by giving them an idea of how much revenue they can expect from each customer over time. Asking for commitments also helps establish trust between both parties, which is key when building successful long-term relationships with customers.
Conclusion:
Pricing conversations aren't always easy — but they are necessary if founders want to protect themselves from getting caught in a pricing predicament down the line. Asking questions about budgets and commitments during customer discovery will help ensure that both parties understand exactly what they're getting into before any work begins or investments are made. Having these conversations earlier rather than later will save time, money, and resources in the long run — not to mention headaches! So take some time now to discuss pricing and buying commitments with your customers before diving headfirst into development mode!