I think this is bad advice.
I think this is bad advice. What you call "BullShit price you pull out of your ass" is called value based pricing. It means pricing your service on the value you bring to the customer, not the amount of work you invested. Because your customer doesn't care! Whether he's a genius coder that threw this together in a weekend, or he's a team of 10 that coded 6 months on this - the customer does not care. If the ROI is higher than the cost, he will buy. If it is not, he won't. Competition-based pricing only works if the products are completely equal . Like tap water or energy. Most software products are far less equal than programmers think. To us it's all just code. To real customers, even addressing their pain point in clear and concise web copy is worth something , because it saves them time. And that is what you monetize, not the lines of code written.
Posted by dkyc on Nov 21, 2014, 4:11 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 think this is bad advice.
I think this is bad advice. What you call "BullShit price you pull out of your ass" is called value based pricing. It means pricing your service on the value you bring to the customer, not the amount of work you invested. Because your customer doesn't care! Whether he's a genius coder that threw this together in a weekend, or he's a team of 10 that coded 6 months on this - the customer does not care. If the ROI is higher than the cost, he will buy. If it is not, he won't. Competition-based pricing only works if the products are completely equal . Like tap water or energy. Most software products are far less equal than programmers think. To us it's all just code. To real customers, even addressing their pain point in clear and concise web copy is worth something , because it saves them time. And that is what you monetize, not the lines of code written.
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