Wednesday, September 14, 2011

Do the ROI / TCO Calculators / Sales Tools support product configuration and pricing?

Yes, most ROI / TCO Tools include the configuration and pricing of solutions. This is needed to calculate TCO comparisons, where you need to know the configuration and cost of the solution, as well as for ROI calculations, where you need to know the configuration and pricing in order to tally the investment part of the ROI equation (net benefits / investment).

To configure solutions, the ROI / TCO Tool collects information about the customer scenario via an initial questionnaire to feed a configuration / pricing engine, intelligently scoping the correct solution configuration, sizing and pricing.

The exception: Sometimes, the economic justification tools are designed for use early in the sales process. In these and perhaps other cases, it may not desirable, or sometimes even possible to price the solution properly. These tools where configuration is not included focus exclusively on calculating and communicating benefits versus solution configuration, pricing and costs.

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