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• No, you can't set your pricing to capture all of the theoretical value that your product creates. Otherwise it's a wash. Also, there's friction in any syste
by wheels 15y ago
• No, you can't set your pricing to capture all of the theoretical value that your product creates. Otherwise it's a wash. Also, there's friction in any system, so you not only have to create value (that I get to keep), but do so enough to justify the switching costs.
• No, not unless you have no competitors. And if you have a generic solution to lower support costs by 10%, if you don't have competitors now, you will soon.
• No, software pricing isn't rational. Oh, how I wish it were at times. But in general, unless you're an amazing salesman, your prices have to be at a level that to the customer feel "about right".