Dont Just Roll The Dice - A usefully short guide to software pricing
Contents:
A book on pricing projects and software systems. Of course, because pricing is dependent on the business model, some business models are also introduced.
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Book can be useful to persons who are active in the design of software systems. Sep 02, Patrik Hallberg rated it really liked it Shelves: A great little book about how to price your product, primarily software, but these guidelines can be used for any product. You can find the free e-book here http: The book is divided into 5 chapters: Some - but not too much - Economics Chapter 2: What is your product worth?
Pricing Pitfalls Chapter 4: Advanced Pricing Chapter 5: What your price says about you and how to change it 2. What is your product wor A great little book about how to price your product, primarily software, but these guidelines can be used for any product. Perceived value vs objective value The perceived value might be higher than the objective value People base their perceived values on reference points. This doesn't mean you need to copy the reference point. Perceived value can depend on taste tribe knowledge fives and nines how to increase it: Pricing Pitfalls competitors - if you are going to compete on price, then you should minimize the possibility of a counter-reaction from your competitors if you price your product to high, will other competitors emerge?
Microsoft is famed for this. This only works if people can easily compare the products being versioned. But the effect reverses if people struggle to compare the different versions of the products. In that case, people flee the middle and head for the extremes. They also have a tendency to defer: In turn, that might mean they are less likely to use it. Larger companies tend to buy more copies of software since they have more users. Larger companies also have more money and tend not to be so price sensitive.
This means that the poor are effectively subsidizing the rich. You might lose sales in the long term. On the other hand, they might not have done. Everybody likes a discount, even large companies. Larger companies might have more money, but they can also have stricter purchasing policies. Get past the tipping point and your user base will accelerate rapidly bargains To work best, bargains should be limited to specific products, or specific times different ways of pricing subscription - SaaS Paying lots of small amounts is psychologically easier than paying one large amount.
Recurring payments promote regular usage Many businesses end up with a mixed model. When choosing your pricing model, here are two recommendations.
Secondly, license your software as your customers expect it be licensed — fit in with their business model. Whenever you make a price change, pay close attention to what your customers do. If they stop buying, rethink.
Don't Just Roll the Dice - a usefully short guide to software pricing by Neil Davidson
The book ends with a great checklist: Are you going to price low and sell lots, or price high and sell a few? How does this fit into your brand, the product you have and the image you want to project? How will your customers judge the fairness of your pricing? What reference points will they use?
How will they determine what seems right? Will they baulk at the price you choose, or will they accept it? Who are your customers?
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How does their business work, and how do they expect to be charged? How much money do they have? Do they prefer a one-off fee, or a monthly subscription? Get under their skin. Who are your competitors? How will they react to your pricing? How much more, or less, valuable is your product than theirs? What is their business model? What are their prices?
Don't Just Roll the Dice - a usefully short guide to software pricing
If you undercut them, will you trigger a price war? If you do, are your pockets deep enough for you to win it? Do you want to co-exist with your competitors, or destroy them?
How are you going to sell your software? Do you need to send out sales people to take customers golfing? Or are you planning low-touch sales over the internet? Will you require a telesales team? How much will each sale cost you?
Don't Just Roll The Dice: A usefully short guide to software pricing
Do you need to sell via a channel or reseller? What cut will they take? Can you segment your customers, and create versions?
Refresh and try again. Ergodebooks , Texas, United States Seller rating: Interesting bit of trivia: Don't Just Roll The Dice: Some price — any price — is better than no price.
Is your software worth different amounts to different people, and can you create pricing that reflects that? Students and business people for example, or normal and power users, or maybe you can split by geography or taste. How can you bundle your software? Can you create a larger package that contains more than one software product? Make an informed guess at your price Despite all the psychology and economics, you ultimately just have to pick a price. Some price — any price — is better than no price.
Try it out Practice trumps theory. Try out your pricing and see what happens. Dec 04, Gabor Hajba rated it really liked it. A very good book on pricing - of software, but you can use it for pricing other goods too. This book gives you a checklist of questions to ask yourself and find the answers to find the right price and the right pricing strategy -- which fits your business but your potential customers too.
I recommend this reading to everyone who plans to sell something and is unsure about the pricing. Ask yourself the questions in this book and think about the answers. Jul 01, Kishor rated it liked it. While it contained useful perspectives on software pricing, I felt that the brevity of the book took away more than it added.
However, I did enjoy reading the author's insights on the console pricing wars, and feel that the discussion about enterprise vs. Apr 10, Julian Maurel rated it it was ok. Outdated and very little useful content in The software industry has evolved in 11 years, probably too much for this book to provide any useful insight. Jun 06, Hamid Edouiki rated it liked it. Software pricing made easy with simple exemples and solutions, a must read. Jul 02, James rated it really liked it. I read the free eBook version of this guide Exactly what the title says, a usefully short guide to software pricing.
To be specific, you're NOT going to read this, close the cover, and write down the number you want on your invoice, which is what most people who read this myself included are probably after. Instead, this book is a self-encapsulated simple economic analysis of software pricing models. The reader gets a brief crash-course on microeconomics, demand curves, etc. The caveat is that the simplicity of these economic models is exactly what makes them almost completely useless with real customers and real products.
That's where the rest of the book comes in, explaining the subtleties of marketing software. Sign In Register Help Cart 0. Search Results Results 1 of Not overstocks or remainder copy! Red gate books, Ergodebooks , Texas, United States Seller rating: Dont Just Roll the Dice: We're sorry - this copy is no longer available.
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