Salesforce Announces Price Increase for Various Offerings


Salesforce, the cloud-based software provider, has revealed that it will be raising its list prices across various offerings. This includes Sales Cloud, Service Cloud, Marketing Cloud, Industries, and Tableau. As a result, Salesforce stock saw a boost on Tuesday.

Details of Price Increase

The company has stated that its automation tools will be among the products experiencing higher prices. Specifically, the Professional Edition software will now cost $80 per month, up from $75. The Enterprise Edition will see an increase to $165 from $150, and the Unlimited Edition will rise to $330 from $300.

These new list prices will take effect globally in August. They will apply to both new customers and existing customers purchasing new subscriptions.

Positive Market Performance

Salesforce’s stock, listed under ticker symbol CRM, had an impressive performance on Tuesday. In fact, it was one of the leading performers in the Dow Jones Industrial Average. Closing at $220.41, the stock rose by 3.6%.

Reasonable Price Increase

According to analysts from Evercore ISI, while there may be some customer complaints about the price increase, they believe that a 9% raise is reasonable. This is especially considering that other peer companies have implemented smaller increases. The analysts also noted that Salesforce’s focus on improving operating margins and their approach to pricing are sensible moves. They particularly praised the timing of the increase, which aligns with the upcoming release of AI products later this year.

It is worth noting that Salesforce’s last list price increase was seven years ago. Since then, they have introduced numerous new features, including advancements in artificial intelligence. Additionally, the company has invested over $20 billion in research and development.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Alternative Sales to Amazon Prime Day 2023

Next Post

Department: Trump Can Be Held Personally Liable for Defamation Remarks

Related Posts