How to determine the right price for your app
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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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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
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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
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I agree
- Michael Haephrati מיכאל האפרתי
You do realise the messages you're replying to are five years old, right? :doh:
"These people looked deep within my soul and assigned me a number based on the order in which I joined." - Homer
