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sweet spot pricing for development tools?

I notice fogbugz is priced at $99.  The
professional addition of CityDesk is $349.
Perforce with support is $750 for low quantity, $450
in large quantity.

There seems to be 4ish pricepoints: around $30,
around $100, around $400-$500, even more.

I am thinking $99  for a decent  product that is not
a must have for a company is fair. It's not too high
and you can make a profit. I also wonder if products
under $99 are taken seriously.

valraven
Friday, July 25, 2003

So, you think Joel should charge more for his product just so it will get a "higher profile"?

(;

Avrom Finkelstein
Friday, July 25, 2003

Joel said he regets the decision to have a $79 version of his product.

www.marktaw.com
Friday, July 25, 2003

Where?

...
Friday, July 25, 2003

Never mind, found it.

...
Friday, July 25, 2003

I don't understand.

An ERP/MRP system would not be taken seriously for under $99.

A metric/imperial conversion library would not be taken seriously for over $99.

I think some context is needed here.

Spam
Friday, July 25, 2003

Interesting question. Obviously the price has to be roughly in line as 'Spam' said. Even so there are price points such as:

1. Crappy home software you buy, install and never use, available from supermarkets mostly. About 5 UKP.

2a. Quality home software eg games, software for the intelligent home user or self employed. Maybe 30 to 50 UKP. Eg Age of Empires, virus utilities, Nero etc.

2b. More serious software for home users and self employed. Eg single-user versions of accounting software, Windows Home, Std versions of development tools. 70 to 100 UKP.

3. Professional-type software, bought by businesses or self employed people who are actually earning money. Eg dev tools, MS office, autocad. For dev tools the pro packs used to be 300 UKP ish.

4. Enterprise packages, databases, Windows server.

This list is how I think software is graded, based on my own use and what I've seen. Obviously there are products priced in between, but I've attempted to divide the market by customer type. For development tools you want to be aiming for 2 or 3. Your customers are serious about what they're doing, they have some money and expect your product to save them time or £ or otherwise help them. For market 4 you need flash looking consultants in suits.

1 UKP ~= 1.5 US$

Bill Rayer
Saturday, July 26, 2003

You missed the common shareware price points of $20-$50. Winzip, Musicmatch, Textpad etc are all in that range.

Matthew Lock
Sunday, July 27, 2003

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