I feel like I can speak on the subject, since I just wrote a book on pricing software.
I feel like I can speak on the subject, since I just wrote a book on pricing software. First, it's often a very bad idea to simply take a competitor's price - both Timex and Rolex would go bankrupt trying to match the other's price. Here's the short version of what I suggest: * Write down the pain point that your product solves in 1 sentence. * Write down the types of people who have that pain. * Rank each type by their willingness to pay and their ability to pay. Willingness will be partially based upon how well you can convince them that you'll save / earn them money. Ability will be based upon how much cash is burning a hole in their pockets. Come up with three tiers, one for each group with the highest value for willingness*ability to pay. You may need to alter it a bit, if any of the groups prove too small. I have two product pricing teardowns listed at my site ( http://taprun.com ) that might help you think more about pricing.
Posted by taprun on Nov 21, 2014, 3:13 PM
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pricing (SaaS)
IMO it's a bit more nuanced than what the author portrays it as.
In the UK Amazon have now raised the price of general shipping to be 2/3 the price of a months prime subscription.
Credit where credit is due, critics claiming "[Apple device] is too expensive for something that just does [basic function]" have been pr...
I like to buy music.
Meet K-Claw.
Fable is way too expensive for basic software stuff.
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I feel like I can speak on the subject, since I just wrote a book on pricing software.
I feel like I can speak on the subject, since I just wrote a book on pricing software. First, it's often a very bad idea to simply take a competitor's price - both Timex and Rolex would go bankrupt trying to match the other's price. Here's the short version of what I suggest: * Write down the pain point that your product solves in 1 sentence. * Write down the types of people who have that pain. * Rank each type by their willingness to pay and their ability to pay. Willingness will be partially based upon how well you can convince them that you'll save / earn them money. Ability will be based upon how much cash is burning a hole in their pockets. Come up with three tiers, one for each group with the highest value for willingness*ability to pay. You may need to alter it a bit, if any of the groups prove too small. I have two product pricing teardowns listed at my site ( http://taprun.com ) that might help you think more about pricing.
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