Creating Competitive Advantage by Rethinking B2B Software Pricing

Abstract: The choice of pricing model for software products is a complex procedure due to the different characteristics compared to physical products. This thesis investigates and compares software pricing models in a B2B setting, and describes how KAM plays a role in executing a pricing model. The research has been conducted as an opportunist case study on Adebro, a technology company in the B2B sector. The thesis have come to the following conclusions, with data from interviews and literature: Perpetual license is, and will continue to be, an attractive pricing model for Adebro. However, a subscription-based usage independent pricing model is also attractive for the future. Implications of switching pricing model would be largest when changing between a perpetual and subscription model, where revenue will have the most visual impact. The most important task for KAM is to communicate the change to current and new customers. KAM and the pricing model must also be structured to support each other to be successful. The thesis contributes to science by providing research on pricing models for manufacturing related software. However, studies concerning the weighting of importance for different pricing parameters would be of interest for the future.