ServiceNow Pricing & Sales Tactics Guide


ServiceNow sells one of the most expensive solutions on the market, commanding a premium over comparable options. We do not deny that ServiceNow is an expensive solution, but that does not mean costs cannot be reduced. In this document we will dive into competitive discounting for ServiceNow products and offer solutions for customers to mitigate ServiceNow pricing risk.


This ServiceNow pricing report will focus on the following topics:

1. ServiceNow Pricing Statistics 

How does ServiceNow price in comparison to their competition? We detail the price premium ServiceNow has over their closest ITSM competitor, BMC Helix, and other pricing statistics such as price variance and gross margin per license sold. This section sets up the document to illustrate how successful ServiceNow is at their pricing strategy, consistently pricing customers at premiums and maximizing their revenue per transaction.

2. ServiceNow Pricing and Discount Percentages 


Provided in this section is a detailed table highlighting the average ServiceNow pricing across all major ServiceNow product families. This table provides transparency into the price ranges we have observed over the last year, exemplifying the large range in discounting offered to customers. Though many customers may find themselves in these ranges, this section explains that the best deals include discounting that exceed the highlighted range, and with proper planning and negotiating leverage any customer can improve their ServiceNow price.

3. ServiceNow Pricing Tactics and Risks

ServiceNow uses a number of pricing tactics to ensure they win deals, maximize margin, and increase costs for the customer. This section details three unique ServiceNow tactics used in their licensing model that can present pricing-related risk for customers:


  • ServiceNow Product Bundling: ServiceNow commonly bundles product modules into suites to hide necessary pricing details and to lock customers into higher costs for additional functionality they may or may not need. This lack of transparency translates to future premiums inflicted on the customer without the need for price justification.

  • ServiceNow Product Changes: ServiceNow commonly splits or re-brands main service offerings to create new product sets. Many of these “new” ServiceNow products offer the same level, or sometimes less functionality than their predecessor. For the customer to continue to access the same level of service, additional fees typically apply. This section provides detailed advice on how to avoid these ServiceNow cost increases and prevent ServiceNow from finding loopholes in your pricing through product changes.


4. ServiceNow Price Incentives


In the last section of this ServiceNow pricing report, we detail the top three motivators for ServiceNow sales reps. If a customer understands the incentives and compensation plans for a ServiceNow rep, they will have all the tools needed to form a negotiation strategy for the ServiceNow purchase. We dive into how compensation for ServiceNow reps are calculated, applicable bonuses achieved through specific deal scenarios, and which ServiceNow products hold a higher weighted value for a sales rep’s compensation.



To increase your chances of achieving higher ServiceNow discounting and lower costs, this document will aid you in identifying competitive pricing, ServiceNow pricing strategy, and ServiceNow sales rep incentives to facilitate movement on your bottom line. For additional assistance on your ServiceNow purchase, review some of the other ClearEdge resources listed below to help plan your strategy and mitigate risk.


Download Our ServiceNow Pricing Guide

ServiceNow Pricing.jpg


See our other ServiceNow guides below.

Negotiating with ServiceNow


with ServiceNow

Rightsizing Your Spend with ServiceNow

Rightsizing Your Spend

with ServiceNow

Top 3 Gotchas in a ServiceNow Contract

Top 3 'Gotchas'

in a ServiceNow Contract