Setting prices for a software product is definitely one of the more daunting tasks for a Product Manager. While it’s a little easier to set the price for shrink-wrapped, mass-marketed software for consumers, finding your way to a satisfactory and satisfying price for enterprise software is like finding your way through a labyrinth.
It’s hard to tell whether coming up with a pricing scheme is a dark art, bordering on witchcraft, or an evil science, combining a methodical, experimental approach with cynicism about human nature.
In the end it’s the gut that decides it. Maybe that’s why the whole exercise seems so mysterious.
Read on for tips on setting software pricing, advice based not on how things ought to be, but how they really are.
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