JMP is adopting a flat, tiered pricing structure that is easy to explain to customers, makes it simple for our customers to buy JMP and is straightforward to audit.
A pricing team established in Q2 of 2022 focused on what Finance Director Jason Romanos calls “a once in a generation opportunity to really take a look at our pricing.”
The team, including Rachel Smith (@RMSmith), Carol Gretz (@CJG), Daniel Valente (@Daniel_Valente), Lori Casto (@lori_casto), Jason Romanos (@jasonnzl), John Jones (@JonesieAtJMP) and Jon Weisz (@Jon_Weisz), had three primary objectives:
- To simplify pricing and offerings for customers and sales teams.
- To drive JMP growth.
- To allow JMP to become a standalone, auditable company.
Why is this a good time to make pricing changes?
As CEO Jon Weisz says, “complex is expensive.”
Dan Valente, Senior Manager of Product Management, adds that we are “removing complexity without removing what’s best for our customers. We have aggressive growth targets and one of the biggest levers we can pull is to set up a pricing structure that makes those growth goals easier to attain.”
And to make our business more straightforward to audit, we must recognize that “over the past couple of years revenue recognition rules have changed substantially,” says Jason. “This is driving software companies to more of a flat pricing concept.”
(Revenue recognition is an accounting principle that requires companies to recognize revenue on the income statement when a good or service is delivered to the customer, rather than when the cash is received.)
Moreover, we are aligning with SAS as it streamlines pricing on a quick timeline – part of its journey to IPO. We still rely on some SAS processes and systems, so the new pricing structure is system agnostic to smooth the transition from legacy SAS systems to new JMP business systems.
What you need to know today
- Pricing is being updated and simplified this year.
- The goal is to make JMP easy to buy, the pricing easy to understand and the company easy to audit.
- Training will take place Monday, July 11, at 8 a.m. ET and 8 p.m. ET. It will provide details on the new JMP pricing effective Aug. 1.
- We have already rolled out one pricing change in the United States and for Premier customers worldwide (with additional sales region adoption at the discretion of the sales leader within that region): Enterprise License Agreement (ELA).This Sales Memo provides details.
- Sales leaders announced a quoting moratorium this week.
- The approvals matrix has been updated.
- A JMP focused deal support team has been established to support the sales teams as they talk to customers around our new offerings, approval of deals, pricing support. More about the deal support team is included in the approvals matrix document.
On the quoting moratorium
Any quotes issued prior to 15JUN22 remain valid for the period listed therein (up to 90 days). Any quotes issued from 15JUN22 to 31JUL22 must include a term that does not exceed 31JUL22. Effective 01AUG22, all new quotes must include a term of validity that does not exceed 45 days from the date of issuance.
“We’ll honor all quotes currently out for new business,” Jason explains. “New quotes between now and July 31 must have an end date of July 31 because we are switching to the new pricing scheme Aug. 1.”
Thanks. I look forward to training and a simple sentence or two to explain it to customers. who ask or say current structure is complicated.
