A week of selling software under a "Name Your Price" model

http://www.irradiatedsoftware.com/blog/files/a_week_of_sizeup_sales_with_name_your_price.php

by Irradiated • 17 years ago

7 2 17 years ago

patio11• 17 years ago

I think you will find that customers are much, much less sensitive to pricing issues than developers are. This has been the consistent experience of people on the Business of Software boards.

Really, the best advice I have ever gotten in my business was to get over the feeling that it was somehow unclean to charge money, and charge the highest amount I could say with a straight face. (I literally winced when typing in the price the first time. And when raising it recently. Apparently I care a heck of a lot more than my customers do.)

There are significant ancillary benefits to charging more. In addition to not sending 16% of your income to the fine folks at Paypal, you can afford advertising.

I charge $30 when people who consider themselves my competitors charge $0, $10, and $22. They apparently think that means a customer doing a comparison between the two of us will choose them. I think that means that I can afford to spend more on ads than them every single time. This is a significant factor when Google AdWords is the major advertising mechanism in my niche.

Irradiated• 17 years ago

I appreciate the advice. There is a clear idealist (developer) vs pragmatist (business person) clash here that I may need to overcome to survive in this business.

A week of selling software under a "Name Your Price" model

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