Editor's Note:Chris Heard is the CEO and co-founder of Olive Technologies, an IT consulting firm based in Vancouver, Canada.Olive Technologies. The views expressed in this article are solely those of the author.

The software market holds immense growth potential, witha recent Gartner surveyindicating that over 60% of enterprises plan to increase technology investments in 2024. However, for software vendors, prioritizing trust-building is crucial, as neglecting this could lead to significant business losses.

Gartner found that price is the primary consideration for nearly half (49%) of enterprises planning to purchase software. The research notes that overly complex pricing structures, hidden fees, and unexpected costs often cause software deals to fall through, potentially damaging vendor reputations and losing customer trust.

This research highlights the growing tension in the software-as-a-service (SaaS) procurement space: price-sensitive buyers are struggling with complex pricing models, making it harder to control spending.

The "growth at all costs" mindset has led some SaaS companies to overpromise results and obscure pricing details in pursuit of potential deals. According to research by venture capital firm Openview,only 45% of SaaS vendors publicly disclose pricing online, while the remaining 55% hide prices from potential customers.

But salespeople have their own strategic considerations: directly showing prices may cause potential buyers to hesitate, thinking, "Wait, this is too expensive, I'm not sure I can justify this expense." Salespeople know the product isn't really overpriced—it's just that buyers haven't yet understood the product's true value at the initial stage.

It's no wonder the G2 Software Buyer Behavior report found that60% of software buyers do not involve vendor sales teams during the initial research phase, and 68% of buyers do not invite sales representatives into conversations until the final purchasing stage.

The bigger issue lies in the lack of trust in salespeople and their tendency to take a reactive rather than proactive approach, which pushes buyers toward self-service channels such as review sites and other user-generated content.

The problem is twofold: on one hand, vendors should increase pricing transparency; on the other, buyers also need to have reasonable expectations about the full value of the product. To ease the tension between buyers and sellers, both parties can take steps to build more trust and transparency around software pricing.

A Two-Way Street

Vendors should be upfront about pricing models, tiers, and any additional fees, avoiding hidden costs or surprising buyers later, because transparency builds trust. They should offer free trials, demos, or freemium versions to let buyers experience value before committing, which reduces risk for both parties.

Vendors should also provide detailed plans that clearly specify what each pricing tier includes, leaving no room for doubt, assumptions, or error. As product features expand, communicating how pricing may evolve helps set reasonable expectations and avoid unpleasant surprises. Ultimately, vendors should focus on delivering ongoing value and building partnerships, not just closing deals.

Meanwhile, buyers must clearly communicate their business needs and goals to help vendors understand desired outcomes. Buyers should also take time to ask questions about pricing models, contract terms, and budget limits. Reliable vendors will provide pricing guidance, and early transparency—clarifying what's included and what's an add-on cost—can prevent "sticker shock" later. To increase confidence, buyers should seek evidence of value from vendors' existing customers.

Finally, buyers should focus on achieving return on investment and business outcomes, not just driving down prices. If possible, consider starting small to prove value, then scaling up gradually. Build trust through experience and aim for a win-win.

Buyers and vendors can foster transparency and trust by promoting open communication, embracing learning, and emphasizing shared value. The result? Better partnerships and a smoother procurement process that benefits all participants.