Through this entry in the Teambox blog from Pablo Villalba I discovered the E-Book “Don’t just roll the dice – A usefully short guide to software pricing”. The book written by Neil Davidson is available for free as pdf on the official site or as physical copy in bookstores.
Here are the, in my opinion, most important points in the book:
Choosing the right pricing model
When choosing your pricing model, here are two recommendations. Firstly, be boring. Secondly, license your software as your customers expect it be licensed – fit in with their business model.
What is your product?
You might think that your software product is just the bits and bytes that your customers download, but you’d be wrong. In reality, your product is much broader than that. It’s not just the software – it’s the documentation, the help required to get it working and the promise of support when things go wrong. It’s the future roadmap of the product, the pledge to carry on developing future versions. In some cases, it’s a dream; a way of life.
Differentiating your product
Ultimately, it comes down to differentiating your product. It almost doesn’t matter on what – features, benefits, the way that you sell, the service that you provide, the country you’re based in – more or less anything will do.