Joel on Software Pricing

December 16, 2004:

When you're setting a price, you're sending a signal. If your competitor's software ranges in price from about $100 to about $500, and you decide, heck, my product is about in the middle of the road, so I'll sell it for $300, well, what message do you think you're sending to your customers You're telling them that you think your software is eh. I have a better idea: charge $1350. Now your customers will think, oh, man, that stuff has to be the cat's whiskers since they're charging mad coin for it!

Camels and Rubber Duckies

(Via Joel on Software.)

Joel with another excellent look at a difficult aspect of the software business. Pricing is hard, especially for smaller developers who may lack the confidence to charge what they really need to in order to survive.

Posted by Kimbro Staken