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How to value and put a price on software (license)

Asked 2009-04-06T21:05:19.557
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In my company we often value the software to be almost the same as concurrent software on the market. While this is one way I'm interested of other (maybe more academic) ways of value and put a price on software.

Any ideas or methods that have been succesful for you?

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I value my product as a fraction of it's value for the client. My venture sells web apps so it's slightly different, but if a web app would streamline 75K worth of overhead out of an office's budget, I charge 25K for it.

If it's a one time sale you have the option to examine the client and what value it will deliver to them. If it's a publicly sold product, the options are very different.

The basic formula is to sell it for around 30% of what it's worth to clients/end users. If you can deliver better quality than the next company, pricing in step with them is a big mistake because you can make more and take a better market share by promoting the features that justify the cost.

answered 2009-04-06T21:13:17.103

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