Once your organisation has identified the need to acquire pricing technology as a business solution, the debate which often follows is whether to produce this internally, or purchase the technology from a specialist supplier – both of which have pros and cons.
Whilst this is a difficult decision to make, it should be one which is dependent on a few considerations, primarily the organisation’s budget, timeline and the team’s existing skillset.
Pros of in-house building:
Producing in-house technology ensures that your team will have the necessary insight into your organisation. Not only will they already understand your particular industry, but they will also have a more focussed understanding of the pricing issue.
You will be able to control the application and development of the pricing technology, and tailor it to the needs of your organisation.
There is no pressure to research software vendors, and you have the flexibility to develop the software at your own pace.
Cons of in-house building:
Cost & Time
There is an assumption that building pricing software internally is cheaper – this is not necessarily always the case. Building pricing software requires access to a large amount of resources. Not only would you need to appoint a project manager, you would also need to find designers, multiple experienced software engineers to code, testers and feedback from the users.
It is not uncommon for a project of this size to take a minimum of two years to get off the ground internally. If you multiply this by the amount of people needed to make the project suceed, you will accumulate a lot of wasted time, and excessive spending. An existing software platform puts you ahead of the game.
Should you choose to recruit and hire new talent, not only will this be a time-consuming and difficult process, but it also means expanding your team which is again, very costly. Experienced freelance software developers can charge anything upwards from £350 per day.
Pricing software is constantly re-developing and becoming more efficient. In-house software maintenance alone is incredibly financially demanding, and you must therefore also be willing to invest in a software team to stay on top of these technological developments. Not only this, but you will also miss out on new functionalities that are included in the updates of ready-build pricing platforms.
Pros of Purchasing Tech
Purchasing tech means introducing software which has been fine-tuned over years worth of time, from multiple people and interactions with clients about what works and what does not.
However, it not simply about the development time alone. Experience involves brainstorming, incorporating feedback into the product, and innovating the software based on case studies. Although a pricing tool may seem as a simple piece of software, sometimes the simplicity of software is the result of years of making the complex simple.
If you opt for a ready-made solution, you also ensure that the software is fully supported and maintained. A pricing software allows you to stay on top of the latest software patches, ensuring your code is up to date and also secure. You will also have access to new functionalities which are introduced through software updates.
By partnering with a pricing specialist, you will gain additional support that could ultimately help you increase your profitability, whilst also giving you access to a wider network to share ideas with.
Cons of Purchasing Tech:
Technology can be quite expensive. This is why it’s vital to weigh-up and compare the costs of both approaches. Which solution provides the most potential to drive profits? Which cost is better suited to your budget?
Lack of Personalisation
All clients are given the same software package, which means you may be paying for functionalities you do not benefit from, or are unable to carry out the functionalities you hoped to.
Choosing the Right Tech:
This can be a confusing and difficult process. How can you be certain this tech is right for you? Whilst this may seem like something to avoid, it is still a solution worth considering as internally developing software requires even more research, uncertainty and decision-making.
Which solution is right for you?
Deciding whether to product software in-house or purchase it, is a process that requires you to understand which solution will work most advantageously for your particular organisation.
There is no one-size-fits all solution, which is why it is necessary to be pragmatic about your decision.
Purchasing software will quickly manage your pricing issues, can provide long-term maintenance of your pricing, and can be the most affordable.