How to determine the right price for your app
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
pinifg wrote:
Can someone please list the maintenance costs of an application?
How can anyone other than the developer know this? Maintenance cost is a function of the complexity of the app and the number of support people required, multiplied by the number of customers who need help. Almost impossible to guess in advance. The price for your app can also only be determined by you as a function of the devlopment cost, the number of users, and the time period in which you hope to recover your costs. You also need to pitch it not too far above the competition unless you are certain that it's a killer app that will sweep the board.
Unrequited desire is character building. OriginalGriff I'm sitting here giving you a standing ovation - Len Goodman
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pinifg wrote:
Can someone please list the maintenance costs of an application?
How can anyone other than the developer know this? Maintenance cost is a function of the complexity of the app and the number of support people required, multiplied by the number of customers who need help. Almost impossible to guess in advance. The price for your app can also only be determined by you as a function of the devlopment cost, the number of users, and the time period in which you hope to recover your costs. You also need to pitch it not too far above the competition unless you are certain that it's a killer app that will sweep the board.
Unrequited desire is character building. OriginalGriff I'm sitting here giving you a standing ovation - Len Goodman
Tanks, Yes you are right, I now the complexity of my application but I thought maybe there is A discussion on the subject that list more costs that I didn’t though about And case studies in order to forecast it better and maybe make changes now before Deployment involves simple maintenance in the future. Do you know more? Tanks, Patrick
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Tanks, Yes you are right, I now the complexity of my application but I thought maybe there is A discussion on the subject that list more costs that I didn’t though about And case studies in order to forecast it better and maybe make changes now before Deployment involves simple maintenance in the future. Do you know more? Tanks, Patrick
pinifg wrote:
Do you know more?
Sorry no, but you could look at some of the other discussions here.
Unrequited desire is character building. OriginalGriff I'm sitting here giving you a standing ovation - Len Goodman
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
I suppose that depends upon the type of app, the customer base etc. Our company develops a app for a small group of customers. They yearly pay a fixed perc of the initial prize to get support. If they have additional wishes, they have to pay additional per hour or fixedprice. A new (custom)module is prized the same way: they buy it, normally fixed prize, and the support prize per year rises with the same perc. The prize for the module is based upon investment in resources plus a risk margin and sometimes devided by the number of clients we know that will buy it. I don't know how TotalCommander does it, but they charge only once, and give updates for free. They probably have a very big userbase.
Regards ... OttO
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
You have to determine the pricing model first that you want to do, for example a one time fee or a subscription service. It is a great question but not one anyone else can answer. You have to have a feel for what the market is willing to pay. You have to decide.
There are only 10 types of people in the world, those who understand binary and those who don't.
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
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As for maintenance, you should know best how much does it cost you. Other indicator for the price is the competition. Are there other apps like yours? How big is the need for your app, etc.
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Unless you want to be labeled as spammer and booted from the site, please remove spam/advertisements from your signature line.
:thumbsup:
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
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pinifg wrote:
Can someone please list the maintenance costs of an application?
How can anyone other than the developer know this? Maintenance cost is a function of the complexity of the app and the number of support people required, multiplied by the number of customers who need help. Almost impossible to guess in advance. The price for your app can also only be determined by you as a function of the devlopment cost, the number of users, and the time period in which you hope to recover your costs. You also need to pitch it not too far above the competition unless you are certain that it's a killer app that will sweep the board.
Unrequited desire is character building. OriginalGriff I'm sitting here giving you a standing ovation - Len Goodman
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:thumbsup:
Ideological Purity is no substitute for being able to stick your thumb down a pipe to stop the water
Depends on 1.Efforts for implementation 2.If you are implementing as project then price should be more depend on point 1 3.IF you are implementing as product then it depends on your market penetrating strategy which covers point 1 as well as marketing ,support . it also requires consideration in making enhancement in product as per its market type
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:)
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It depends on which model you develop within. A) If this is a project developed on request: 1) Hourly rates (development, test phase) X developers + server cost + adm. time 2) Fixed cost. Stipulated estimate of 1). Add some slack for unseen costs/time. In addition segment the total cost by development, operation and maintenance. Hourly rate is based on market price + adjustments for how good you are/experience and your market value in general (a well known company will be more expensive than a new established one). B) If this a volume project for the market: 1) Your net cost (time, marketing, rent etc.) / estimated sold units + provision. 2) Competitive: What do your competitors price their similar product at? In addition you could choose sub-models such as subscription, upgrades etc. As always, there are different risks involved, especially with model B. Hope this will give you a starting point.
-- Kenneth Nilsen
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
It all depends on tons of factors: 1. how many time you've spent doing it. 2. how many units you expect to sell. 3. how many maintenance you expect that will need to give. 4. the basic cost of your company per year. ... A good way to start (probably) would be to see how your competitors are billing it and try to see how many of your previous "expects" would be acceptable. Typically you will have to set a sales target... Cross fingers and good luck!
[www.tamautomation.com] Robots, CNC and PLC machines for grinding and polishing.
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It all depends on tons of factors: 1. how many time you've spent doing it. 2. how many units you expect to sell. 3. how many maintenance you expect that will need to give. 4. the basic cost of your company per year. ... A good way to start (probably) would be to see how your competitors are billing it and try to see how many of your previous "expects" would be acceptable. Typically you will have to set a sales target... Cross fingers and good luck!
[www.tamautomation.com] Robots, CNC and PLC machines for grinding and polishing.
The time you have spent on writing an application doesn't make much difference. You can invest little money and come up with a selling application. Read about how Microsoft started...
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The time you have spent on writing an application doesn't make much difference. You can invest little money and come up with a selling application. Read about how Microsoft started...
Like mine, your answer is not complete: I'm working in the automation world, programming robots, CNC, PLC... to get machines work. In my case the time it takes to make an app is one of the most important factors. If one cpian asks that here I understand he/she is at least a small company, I don't know how many small companies become as big as Microsoft, but probably billing depending the amount of hours won't be a bad idea. In the other hand, if you are in the mobile app industry then you have to play with the number of apps you plan to sell and find another way to count the money the app should cost... So it is not easy to give a proper answer without clarifying the sector the OP works for.
[www.tamautomation.com] Robots, CNC and PLC machines for grinding and polishing.
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The time you have spent on writing an application doesn't make much difference. You can invest little money and come up with a selling application. Read about how Microsoft started...
Michael Haephrati wrote:
Read about how Microsoft started
Unfortunately, you are comparing apples and oranges here. When Microsoft launched, there weren't many companies doing what they did. Compare that with the market now, and it becomes apparent that you have to spend a lot more time investing in your software than they did because you have to have a differentiator. The key question you have to ask yourself is "if I were a customer, why would I choose my product over X" with X being your competition. You must be able to define clear reasons; after all, these are the things you are going to market your product with. Then you enter the cycle of trying to keep one step ahead of X, but that's a whole different story.
*pre-emptive celebratory nipple tassle jiggle* - Sean Ewington
"Mind bleach! Send me mind bleach!" - Nagy Vilmos
CodeStash - Online Snippet Management | My blog | MoXAML PowerToys | Mole 2010 - debugging made easier
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Michael Haephrati wrote:
Read about how Microsoft started
Unfortunately, you are comparing apples and oranges here. When Microsoft launched, there weren't many companies doing what they did. Compare that with the market now, and it becomes apparent that you have to spend a lot more time investing in your software than they did because you have to have a differentiator. The key question you have to ask yourself is "if I were a customer, why would I choose my product over X" with X being your competition. You must be able to define clear reasons; after all, these are the things you are going to market your product with. Then you enter the cycle of trying to keep one step ahead of X, but that's a whole different story.
*pre-emptive celebratory nipple tassle jiggle* - Sean Ewington
"Mind bleach! Send me mind bleach!" - Nagy Vilmos
CodeStash - Online Snippet Management | My blog | MoXAML PowerToys | Mole 2010 - debugging made easier
I completely agree with you, just keep in mind that sometime you can do great things with little money and vice versa.
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
You can search about similar apps and their prices and comparing features of both. also it is important you notice to other important factors like Country you live, currently market situation and others. Regard -Amir Mohammad NAsrollahi
/* LIFE RUNS ON CODE */
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Dear developers, I just finished my project (outlook 2007 addin) and it is ready for deployment. Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance. Can someone please list the maintenance costs of an application? I have difficulties particular in the ratio of tech support per user (maintenance costs) Tanks Patrick
Costing a software product is also based on strategy. You can send it for lesser price at the beginning. So that more users can use your software and once the user base grows you can increase the price. You can read a case study and get some idea from it.
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Like mine, your answer is not complete: I'm working in the automation world, programming robots, CNC, PLC... to get machines work. In my case the time it takes to make an app is one of the most important factors. If one cpian asks that here I understand he/she is at least a small company, I don't know how many small companies become as big as Microsoft, but probably billing depending the amount of hours won't be a bad idea. In the other hand, if you are in the mobile app industry then you have to play with the number of apps you plan to sell and find another way to count the money the app should cost... So it is not easy to give a proper answer without clarifying the sector the OP works for.
[www.tamautomation.com] Robots, CNC and PLC machines for grinding and polishing.
Its a matter of demand as well
- Michael Haephrati מיכאל האפרתי
