Malcolm Greene wrote: > Looking for feedback on how to come up with a subscription based > pricing option for a traditionally priced piece of software.
Exactly the approach I'm wanting to take, too. > > Even though our product is not a hosted service (yet), we have > several pilot customers asking us about an option to pay for our > software on a subscription vs. up-front basis. I think more and more folks are going to want to go this route. > > For purposes of this discussion, given a software product priced > at $1495/seat plus 20% year support and maintenance (after the > first year), what would you consider a fair monthly fee for a > pay-as-you-go (no contract) monthly subscription and what is the > justification behind your pricing model? > > My initial thoughts: > > A monthly subscription fee that's between 6.5% to 10% of the > retail price. Using the above example, a monthly subscription > price would be between $99.95 and $149.95 with a break even > period between 10-15 months. Important to make the point about the break-even period. > > Anyone have any better ideas or reference to a scientific way to > approach this question? For me, I want the approach that is the LEAST hassle administratively. I don't want to send monthly invoices. Call me lazy. -- Mike Babcock, MCP MB Software Solutions, LLC President, Chief Software Architect http://mbsoftwaresolutions.com http://fabmate.com http://twitter.com/mbabcock16 _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
