The best sales advice I ever got was from a neighbor that lived next door when I was growing up. He was a sales guy and darn good at it (one of those Millionaire Next Door types - i.e. looks middle class but really wealthy). Anyway, I managed to get a job in sales while working through college and he advised me that it's a darn poor salesman that uses price as a selling tactic.
Armed with that knowledge I did quite well and couldn't help but notice that many of my colleagues immediately attempted to use price as one of their first selling points: "I think I can get you a good deal on this one - maybe knock it down a few bucks." To paraphrase Oscar Wilde they knew the price of everything but the value of nothing... It's better to sell the *value* of the product. ~joe -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Dr Gerard Hammond Sent: Wednesday, February 15, 2006 9:29 PM To: REALbasic-NUG Subject: [OT] Pricing your killer app Hi, Sometimes I see software being sold for $2, $5, $7 dollars and I shake my head in disbelief. If the person who wrote this software only thinks it's worth $7 I'll often think it is junk and consider writing it myself and have the source code. How could you offer support on a $7 product. Plus to raise a requisition or use my VISA just seems more trouble than it's worth. When I shop I want to buy something of value, say $50. Next time you are thinking about releasing a product, please calculate and factor in the real cost of having to write _and_ provide support for it. OK lets say, you want to earn $100,000 USD per year, with 4 weeks holiday, 5 days per week, working for about 8 hours per day. Not unreasonable. You get a life, some money and can have a non-email group family. This is 1920 hours per year that you can work on your REALbasic project. With these figures, it works out that you need to charge yourself out at $52/hour. Now look at your $7 killer app and ask yourself are you really going to sell 8 copies for every hour that you took to write it. Or another way, did it only take you 8 minutes to write? I think not. So price it properly and if you do sell a million copies you'll be über rich..... -- Cheers, Dr Gerard Hammond Bioinformatic Analyst Garvan Institute of Medical Research, Sydney, Australia. All computers wait at the same speed. _______________________________________________ Unsubscribe or switch delivery mode: <http://www.realsoftware.com/support/listmanager/> Search the archives of this list here: <http://support.realsoftware.com/listarchives/lists.html> _______________________________________________ Unsubscribe or switch delivery mode: <http://www.realsoftware.com/support/listmanager/> Search the archives of this list here: <http://support.realsoftware.com/listarchives/lists.html>
