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It's hard to give specific pricing advice without any information about your product, customer, competition or goals. Try to figure out how much benefit the co
by taprun 10y ago
It's hard to give specific pricing advice without any information about your product, customer, competition or goals.
Try to figure out how much benefit the company thinks it would derive from your product. That's the absolute ceiling of what you can charge. If the company can earn an extra $1,000 by using it, it's not going to pay $5,000.
Now think how much the company is currently spending to deal with the problem (labor costs, software licenses, etc). This might be a good estimate of the floor for how much you can charge.
It's hard to say without more information, but you'll probably want to think about pricing somewhere in between the ceiling and the floor.
The lower your price, the higher the ROI you can demonstrate and the more likely the sale (usually). Of course, if you price too low, it can make you look non-credible and scuttle a deal. I mean, whom would you rather trust, a neurosurgeon that charges $40,000 per operation or one who charges for $8 per operation?
Unfortunately, I suspect that you've anchored your prices low with the free, $5 and $9 tiers. As such, they'll probably balk at a high price for the app.
You'll need to break your customer's mindset and get him to understand that this new version is delivering a lot more value than your existing plans.
Better yet, you might want to see what you can do to look like you're not even selling something that's at all like your other plans.
Focus on selling more than just the software. Support, updates and guarantees are all things that people pay for.
One key piece of advice I have is to think this through. Supporting one unique customer with a unique product version might cost you a lot more (in terms of time and aggravation) than it is worth. Think about how likely you are to sell similar "private things" to other firms (and what other benefits you might receive from this specific sale) before you decide that it's worth selling in the first place.
BTW, here's a book I wrote about pricing software: http://taprun.com/pricing/ http://taprun.com/pricing/