We called it the "credit card approval limit". If a divisional/departmental manager can approve a purchase on their credit card without seeking director or board level approval you'll have a much easier time getting past the penny gap with customers.
The reason I bring this up is because software is priced
three ways: free, cheap, and dear.
1) Free. Open source, etc. Not relevant to the current
discussion. Nothing to see here. Move along.
2) Cheap. $10 - $1000, sold to a very large number of
people at a low price without a salesforce. Most
shrinkwrapped consumer and small business software falls
into this category.
3) Dear. $75,000 - $1,000,000, sold to a handful of rich
big companies using a team of slick salespeople that do six
months of intense PowerPoint just to get one goddamn sale.
The Oracle model.