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NETSUITE RAISES PRICES

Ron GillNetSuite has raised list prices on its Internet-based products for new customers. The move was noted by CFO Ron Gill at a presentation this week at the Deutsche Bank Technology Conference. Gill was unable to provide the average price increase and the company hasn't responded to my inquiry about the amount. However, it's interesting to have prices raised since Gill also told the audience that the price of most deals is negotiated company by company.

The executive also said that while most renewers don't technically face price increases, they often pay more because NetSuite has added more functionality. "We tend to raise enough on first renewal to replace [income from] professional services that have gone away," he said. Gill also noted that average selling prices continue to increase, both because of functions added to existing products, and the introduction of higher-cost products, such as OneWorld. He also noted NetSuite had a negative 9-percent margin on professional services in the last quarter and hopes to boost that to breakeven.
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