M
Michael
I have produced a piece of Java enterprise software (using only Java and
open-source components) and I considering my potential options when it comes
to selling and licensing the product. It is a business critical/core
application for certain finance-related companies - a kind of specialised
CRM if you like.
I have a potential customer who has expressed an interest in the application
and has enquired about the cost of the application. His company has around
25 phone operators around 5 specialist workers who would be using this
application full-time.
I am unsure of the pricing model I should use. There are two things that
make this difficult for me:
1) I've never priced such a system and also have limited experience of such
systems from the buyer's perspective
2) Our first client will essentially be a test-bed for the application,
therefore it should be discount accordingly
I have thought of a couple of potential pricing models:
1) Low installation/initial cost (£10-15k?), support based on one
"full-time" person per year (approx £35k per year?).
2) Higher initial cost (£50k?), cheaper support (£20k per annum?)
Which of the above would you recommend? Any other models you would suggest?
Also, should I charge on a per seat basis? e.g. sell 50 seat licenses
intially, and charge per additional seat license? Is a seat license charge
typically per year or permanent? I feel uncomfortable with charging on a
per-seat basis is because the cost will increase disproportionately highly
for the buyer in comparison to me e.g. a single extra £800 annual seat
license will not cost me anywhere near that amount per year in additional
work.
Any feedback at all would be appreciated. Pricing models and examples would
be fantastic. Particularly for Java/open-source applications.
Many thanks in advance.
(cross-posted comp.lang.java.programmer and comp.software.licensing)
open-source components) and I considering my potential options when it comes
to selling and licensing the product. It is a business critical/core
application for certain finance-related companies - a kind of specialised
CRM if you like.
I have a potential customer who has expressed an interest in the application
and has enquired about the cost of the application. His company has around
25 phone operators around 5 specialist workers who would be using this
application full-time.
I am unsure of the pricing model I should use. There are two things that
make this difficult for me:
1) I've never priced such a system and also have limited experience of such
systems from the buyer's perspective
2) Our first client will essentially be a test-bed for the application,
therefore it should be discount accordingly
I have thought of a couple of potential pricing models:
1) Low installation/initial cost (£10-15k?), support based on one
"full-time" person per year (approx £35k per year?).
2) Higher initial cost (£50k?), cheaper support (£20k per annum?)
Which of the above would you recommend? Any other models you would suggest?
Also, should I charge on a per seat basis? e.g. sell 50 seat licenses
intially, and charge per additional seat license? Is a seat license charge
typically per year or permanent? I feel uncomfortable with charging on a
per-seat basis is because the cost will increase disproportionately highly
for the buyer in comparison to me e.g. a single extra £800 annual seat
license will not cost me anywhere near that amount per year in additional
work.
Any feedback at all would be appreciated. Pricing models and examples would
be fantastic. Particularly for Java/open-source applications.
Many thanks in advance.
(cross-posted comp.lang.java.programmer and comp.software.licensing)
