Salesforce, a global leader in customer relationship management (CRM) solutions, recently announced an upcoming pricing hike for its products. An average price increase by 9% across its comprehensive product portfolio, encompassing Sales Cloud, Service Cloud, Marketing Cloud, Industries, and Tableau. This marks the first list price increase by Salesforce in seven years. This move comes as Salesforce continues to deliver groundbreaking innovations and invest heavily in research and development. 

Over the past seven years, Salesforce has been at the forefront of driving CRM innovation, introducing 22 new releases and thousands of new features. The company’s dedication to research and development is evident through its substantial investment of over $20 billion. This investment has led to the development of cutting-edge technologies, including generative AI, which Salesforce has successfully integrated into its product offerings. In just the last few months alone, Salesforce has introduced AI Cloud, Einstein GPT, Sales GPT and Service GPT, and more.

Understanding the New List Pricing

New list pricing will go into effect globally for new customers and existing customers purchasing new clouds in August 2023. 

The new list prices, effective August 2023, will be as follows:

Salesforce aims to maintain consistency in pricing across different currencies to provide a fair and transparent experience for its global customer base.

What you can do to prepare:

The 9% price increase by Salesforce, considering the seven-year gap since the last hike, may be seen as reasonable. However, it is prudent to be mindful of potential cost savings. Here are some factors to consider:

1. Seizing the opportunity: If you are currently negotiating a deal with Salesforce, consider expediting the close date. This will help you secure the previous pricing before the increase takes effect.
2. Contract review: Take the time to review your existing contracts to identify any agreements that are nearing renewal. Consider renewing these contracts ahead of schedule to extend the current pricing terms.
3. Evaluating your technology stack: This price adjustment presents an opportune moment to assess your technology requirements thoroughly. Take a critical look at the solutions you are currently utilizing and ensure that you genuinely need all the features and functionalities for which you are paying. This evaluation can help optimize costs and align your technology stack more effectively with your business needs.

Remember, every penny saved counts. By implementing these proactive measures, you can potentially mitigate the impact of the price increase and make informed decisions regarding your engagement with Salesforce.