Collection: Pricing your products
Here are some alternative ways of pricing your product with links.
Are we all in agreement that there are no silver bullets in determining how to price a product?
Most developers think that "however long it takes to create the product on an hourly basis" is the price to charge. Ummm...No.
Are we all in agreement that programming is strictly overhead and the only thing that goes into it (once you have the tools) is the brain, sweat, and time? Hence, the reason programming is an expense for corporations.
Each product has it's own way of "growing up" and providing value over the long haul. your product should solve a specific problem and provide purpose to your future clients. Whatever purpose your product solves, take the amount of time it takes for a client to complete their tasks and compare that to the way your product handles the solution.
Add in your marginal markup and boom! You're done! No..not really.
Even though you are finished with development, you need to test your product, conduct usability studies, find beta testers, fix bugs, provide product branding and packaging, etc.
There is more to developing a product than just programming. Its determining a price for your product to justify all of your hard work. So, again, it's very hard to price a product unless you have had experience in this field.
This is one of the hardest things that entrepreneurs have in business, which is why I wrote this post and compiled a collection of product pricing articles from around the web.
- How to determine the best price for your product or service (MarketingProfs.com - subscription required)
- Camels and Rubber Duckies (Joel on Software)
- How to set your "right" price (Small Business Brief)
- Product Pricing Primer (Eric Sink's Weblog)
I hope I didn't muddy the waters any more than what they were.
How does everyone else price their products?