Salesforce, the cloud-based software provider, has recently announced that it will be increasing its list prices by an average of 9%. This decision will affect a range of products including their automation tools.
The cost of the Professional Edition software will now be $80 per month, up from $75. Similarly, the Enterprise Edition will be priced at $165 per month, compared to the previous $150, and the Unlimited Edition will now cost $330 per month, up from $300. Other offerings such as Industries, CRM Analytics, and Tableau will also see similar price increases.
These new list prices are set to take effect globally in August for both new customers and existing customers purchasing new subscriptions, as stated in a company press release.
Salesforce (ticker: CRM) shares have experienced a positive response to this news in early Tuesday trading, with a 3% increase to $219.13 leading the Dow Jones Industrial Average.
While some customers may have concerns about the price increase, Evercore ISI analysts believe that a 9% raise is still reasonable considering the 7-year hiatus since Salesforce’s last list price increase. They note that other peer companies have implemented smaller increases.
Over the past seven years, Salesforce has not only introduced new features, including advancements in artificial intelligence, but it has also invested more than $20 billion in research and development.