Lloyd Robert Borrett


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Thursday, October 07, 2004

Product pricing primer 

The other day I met an Independent Software Vendor (ISV) who was struggling with some product marketing and pricing issues. In the area of product pricing the best thing I could do, was to steer him towards an excellent article I came across in August by Eric Sink. If you're an ISV, make sure you read Eric's Product Pricing Primer article. If you're an ISV and you haven't read it, be prepared to get left behind. A couple great tidbits:

In fact, if nobody is complaining about your price, then it is probably too low. The trick is to tune your pricing until the volume of the whining is just right.

And my favourites:

I've given you a whole bunch of guidelines and issues to consider as you face your pricing decision. I've said some things here which conflict with other things I've said here. Which issues are you supposed to consider?

You should consider all of these issues, and probably a few more that are specific to your situation. Look at the decision from every possible angle. Anything you read on the subject of pricing is merely an aid to your own judgment, not a substitute for it.


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