On 01/12/2010, at 04:45 PM, Scott Morrison wrote:

> Currently probably  95% of my sales are single licenses and I am wondering if 
> my volume licensing pricing is too steep and it is encourage people in the 
> same house/small business to purchase one and share with others.  (I don't 
> have a system which checks for # of licenses in use)
>       
> I am considering implementing a "Family pack" which would be good for members 
> of the same household up to 5 people at a price of 2.25 times the single 
> license price.

I think that this is by far too much. Apple has done “family packs” right. They 
charge a comparably low fee for a family license, so it’s easier for a lot of 
customers to stay honest. I deeply believe that most people just buy one 
license, even if they share the software with a family member. And I don’t 
think that most of the potential “family pack” customers need more than 2 
licenses.

I would multiply the single license by 1.25 and round the price up, e.g. if you 
sell something for $29.95 just set the “family pack” price to $39.95. I believe 
that in this case even people who only thought about sharing a piece of 
software (and had no concrete need) would bite the bullet and pay the $10 
premium. Even if you charge only a $10 premium, that’s $10 more than for a 
single license and — based on my assumption — a lot of potential customers 
would be more honest.

> So a few questions:
> 
> Does anyone also extend the "family" pack to "small business packs" -- for 
> organizations <= 5 people.

I wouldn’t allow family packs for small business and/or charge more for 
business licenses. I don’t believe that price is such an important factor for 
businesses, especially if they buy less than 10 licenses.

Best,
Rafael

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