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Don't Just Roll The Dice - A usefully short guide to software pricing

1 rating: 5.0
A book by Neil Davidson

How do you price your software? Is it art, science or magic? How much attention should you pay to your competitors? This short handbook will provide you with the theory, practical advice and case studies you need to stop yourself from reaching for the … see full wiki

Tags: Books
Author: Neil Davidson
Publisher: Red gate books
1 review about Don't Just Roll The Dice - A usefully short...

Great information with an instant payback for the reader...

  • Nov 15, 2009
If you've created software for sale, you have dealt with the all-important question... what do I charge for it? Neil Davidson does an excellent job in helping you figure out the answer in his book Don't Just Roll The Dice - A usefully short guide to software pricing. He doesn't tell you *what* to charge. Instead, he give you a short lesson on how to come up with the best pricing strategy given your situation. And best of all, he does it in a concise 73 pages. I was impressed!

Contents: Some - but not too much - Economics; Pricing Psychology - What is your product worth?; Pricing Pitfalls; Advanced Pricing; What your price says about you (and how to change it); Product Pricing Checklist

It's tempting to think that the cheaper you price your software, the more you'll make. But Davidson puts that misconception to rest right at the start. Depending on your target audience, cheap pricing may either leave money on the table or cause people to perceive your software as low-value. Davidson helps you understand your market and develop a pricing strategy that can maximize the profit you receive from your hard work. He also outlines a number of mistakes that are common and lead to people turning to alternatives without considering your product. For instance, some companies try to throw a variety of different feature combinations at a purchaser, all with different price points. But unless it's easy to assign value to the different features, too many combinations can cause the purchaser to either buy the cheapest or most expensive combination just to save the mental anguish. That means that potential purchasers may again bolt for other alternatives, or you could end up leaving money on the table.

This is an inexpensive book and a quick read, but don't be fooled into thinking that it's of limited value. Don't Just Roll The Dice may well pay for itself with the first copy of software that you sell. And it will *definitely* give you a much better chance at avoiding pricing errors that could be hard to overcome in the market.

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