Salesforce Boards the “Price Hike” Bandwagon

Author: Phil Downe

In August, Salesforce will increase prices an average of nine (9%) across all

flagship products, including Sales Cloud, Service Cloud, Marketing Cloud and Tableau.

Effective August 2023:

• Professional Edition, is up $5.00 / month to USD $80.00, a 7% change,

• Enterprise Edition, is up $15.00 / month to $165.00, a 10% change, and

• Unlimited Edition is up $30.00 / month to $330.00 another 10% change.

Salesforce is using the same rationale that Microsoft used in March of 2022, claiming the list

price increase on all products is warranted because of all the new releases, features, and R&D

investments. The problem is that most of the R&D and investment has gone into new products.

In Salesforce’s case it’s products like AI Cloud, Einstein GPT, Sales GPT and Service GPT. These

new products might be of great value to some early adopters, but for many they are nothing

more than a high-cost solution looking for a problem.

Salesforce has been pushing clients to rush new deals over the next two weeks and close them

before July 31, Salesforce’s end of Q2, before the new price increases take effect. Other clients,

especially those with no price protection in their original deals, are being offered early renewals

to their existing Salesforce deals for the same reasoning.

If your company is looking at a new Salesforce purchase, considering an early renewal over the

next two weeks, or preparing for a renewal negotiation later in the year, please feel free to

contact us at the email below. There are many changes you can make to

protect your company from eroding discounts as you grow your user base, and those constant

price increases with every future renewal.

Email: phil.downe@itnegotiations.com