Selling SAAS to the wrong people

A drastic way of showing a sales scenario.

An IT lead visit one of his providers to talk about SAAS and he comes convinced that cost reduction is one of the benefits he is going to get.

His CEO is pushing him to reduce costs and SAAS seems to be the new IT trend will help him to do that.

Sales manager shows his offering and after the presentation and the detailed study of the numbers, the client sees how immediate cost reduction is not one of benefits he is going to achieve.

He was looking to pay in licences or fees less money that he is currently paying by the service he is currently paying.

What’s your need? Cost reduction?

You can reduce costs with some offerings obtaining for instance 100% of more new features but paying just a 25% more; is it cost reduction?

The problem is probably that your CEO’s understanding of cost reduction is different.