Awesome! Thank you.

David Smith
Systems Administrator
Doan Family of Dealerships
(585) 352-6600 ext.1730
[EMAIL PROTECTED]

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Bill Arnold
Sent: Tuesday, May 06, 2008 9:10 PM
To: [EMAIL PROTECTED]
Subject: RE: Pricing advice requested

David,

I'm knee deep in a project to sync QB customer lists with my product's, so
will just quickly blurt out some thoughts off the top. Hope something here
is of use.

Pricing and marketing are so intimately related that I can't resist talking
about both at the same time.

You don't say, but do you have a website setup that presents these offers?
Are you cross-linked in as many places as possible? Are you listed with as
many 'tools vendors' on the net as possible? Have you written up and
distributed "news releases" and other material that can be posted in all the
'right places' on the net? Can you/are you willing to make deals with tool
vendors to accept 40% of the selling price for copies they sell? You do know
never to enter an exclusive deal with a marketing company, right? Can you
find other products that might be enhanced by including your product within
theirs? 

Putting yourself in the position of a potential buyer of such tools, what
websites do you frequent and can reasonable expect others with similar
orientations will frequent, and get some sort of advertising onto those
websites. 

Are your products thoroughly debugged on all versions of the OS they run on?
Are they intuitive to use or require user documentation? Is doc ready? Would
a video of how to install/use your products help? Do you have such videos on
your website?

Do you accept paypal and other means to make it easy for people to buy?
Can people pay for, download, install and use your products with just a few
clicks? 

As for the actual price, have you studied the offers of others in
essentially the same business? Choosing a price point is a tough call.
We all remember how well a very low price did for Borland, MS and others,
and it's hard to argue against offering solid value for low cost, but you do
have to take into account all of your expenses, particularly marketing and
support costs, and still come out with a respectable profit. If your
products don't require support and you can market them for low cost (say,
less then 40% of selling price), you're pretty much ahead, so long as you
don't have to spend thousands of hours doing unexpected support work. 

Personally, I think tools are a one-time shot (not recurring) pricing
situation, usually bought spur-of-the-moment-of-need, but as you mention you
have 'high end' variants that could be treated differently.

Always keep in mind that the world has 6 billion people in it, so even
selling to 1 in million is still 6,000 sales. Of course, any product that
actually works, does something useful, is priced right, easy to acquire ..
Will sell to more then 1 in a million.


Bill




> Of course... sorry folks...
> 
> I sell software tools ( IE toolbars, custom Office tabs, IE task 
> panes, stand alone applications ) that are used primarily in marketing 
> campaigns that utilize videos. The "big" product is currently the PVU 
> ... personal video uploader ... that in two user clicks allows them to 
> upload a video online in a custom HTML template and generates a link 
> for them to include in to their email. The fancier version will allow 
> the importation of already-uploaded  Youtube, AOLVideo and other video 
> services to "pull" the video into the template for them. The uber 
> version does all that and also will take xls lists of email addresses 
> and will automatically send the mail for you from within the toolbar 
> or app. My other products are subsets of these three.
> 
> David Smith



[excessive quoting removed by server]

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