Joel on Software should be essential reading for anyone in the business of creating and selling online software. Joel has huge experience in the field and his personal blog is a wonderful showcase of useful information and interesting anecdotes.
His recent essay: Camels and Rubber Duckies is another must-read even if the title seems rather esoteric. In a nut shell it is a point of discussion on selecting pricing for your software products and something to keep in mind if you ever decide to sell the fruits of your labour. There are no firm answers but it definitely gets you thinking. It covers some of the factors we take into consideration when pricing our products. Contrary to popular belief, we don’t simply pluck a figure from thin air and use it, we actually do a lot of calculation based on demand, cost of support, product worth and projected sales (which is tied to the price model we select).
I firmly believe that any company has to constantly change and evolve to survive and succeed in this market and staying stagnant for too long or using a model which does not account for growth is a very bad idea. Our main competitor is actually using their stagnation as a selling point. They, for some reason, believe that not reviewing their pricing and licensing models for over four years is a good thing and creating an unscalable support structure with over-promised support targets is a secure and long-term business model.
Takes all sorts, I suppose.
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