Dear SaaStr: When Do “Buy Out” Contracts Make Sense?
SaaStr
AUGUST 13, 2025
Dear SaaStr: What does it mean in enterprise software sales when a company offers to buy out a competitor’s contract? is this a common practice? Offering to buy out a competitor’s contract means that your company is willing to cover the cost or overlap of a customer’s existing contract with a competitor to incentivize them to switch to your solution.
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