Many early-stage founders are hesitant to charge a 6 figure amount, but if you’re selling to Enterprise customers, $100k a year is the minimum price. Here’s why:
1. Time to Close
Enterprise customers can sometimes take 6–12 months to close, so given you’re only going to close a small number of them each year, you’ll need to charge a significant fee.
2. Cost to Supply
Enterprise customers often have a myriad of compliance, security, integration and reliability requirements. All of these will drastically increase your costs to supply the product, so you have to charge a lot more than you would for a consumer or small business.
3. Customer Expectations
If you’re not charging a 6 figure amount, enterprise customers will be suspicious. They expect to be charged more than other types of customers and if you don’t, it may reveal your inexperience.