Looking for feedback on how to come up with a subscription based pricing option for a traditionally priced piece of software.
Even though our product is not a hosted service (yet), we have several pilot customers asking us about an option to pay for our software on a subscription vs. up-front basis. For purposes of this discussion, given a software product priced at $1495/seat plus 20% year support and maintenance (after the first year), what would you consider a fair monthly fee for a pay-as-you-go (no contract) monthly subscription and what is the justification behind your pricing model? My initial thoughts: A monthly subscription fee that's between 6.5% to 10% of the retail price. Using the above example, a monthly subscription price would be between $99.95 and $149.95 with a break even period between 10-15 months. Anyone have any better ideas or reference to a scientific way to approach this question? Thanks! Malcolm --- StripMime Report -- processed MIME parts --- multipart/alternative text/plain (text body -- kept) text/html --- _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
