Wednesday, March 4, 2015

Software Price
and Software Value

"Determine your product's economic value to the customer and price the product to that value, not to the manufacturing cost."

This advice comes from Jeffrey J. Fox, the author of "How to Become a Marketing Superstar - Unexpected Rules that Ring the Cash Register."

Fox believes that it's a mistake to place a price on your product or service that is tied to the cost and effort to build it.

In the software development industry, your customer doesn't know or care how much effort it took you to design or code your program. They're not going to pay you more money because the development life cycle took longer than expected.

And if you price your software too low because you created it in one weekend, your prospects won't be grateful that they're getting a bargain. They'll think that your low price reflects your application's low quality.

Prospects and customers only care how your software will benefit them. Price it accordingly.

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