I just finished my project (outlook 2007 addin) and it is ready for deployment.
Unfortunately, I don’t know how to Determine the Right Price for it that is because the price should be a function of the costs and practically maintenance.
Can someone please list the maintenance costs of an application?
I have difficulties particular in the ratio of tech support per user (maintenance costs)
Can someone please list the maintenance costs of an application?
How can anyone other than the developer know this? Maintenance cost is a function of the complexity of the app and the number of support people required, multiplied by the number of customers who need help. Almost impossible to guess in advance.
The price for your app can also only be determined by you as a function of the devlopment cost, the number of users, and the time period in which you hope to recover your costs. You also need to pitch it not too far above the competition unless you are certain that it's a killer app that will sweep the board.
Unrequited desire is character building. OriginalGriff
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Yes you are right, I now the complexity of my application but I thought maybe there is
A discussion on the subject that list more costs that I didn’t though about
And case studies in order to forecast it better and maybe make changes now before Deployment involves simple maintenance in the future.
Do you know more?
A) If this is a project developed on request:
1) Hourly rates (development, test phase) X developers + server cost + adm. time
2) Fixed cost. Stipulated estimate of 1). Add some slack for unseen costs/time.
In addition segment the total cost by development, operation and maintenance.
Hourly rate is based on market price + adjustments for how good you are/experience and your market value in general (a well known company will be more expensive than a new established one).
B) If this a volume project for the market:
1) Your net cost (time, marketing, rent etc.) / estimated sold units + provision.
2) Competitive: What do your competitors price their similar product at?
In addition you could choose sub-models such as subscription, upgrades etc.
As always, there are different risks involved, especially with model B.
I suppose that depends upon the type of app, the customer base etc.
Our company develops a app for a small group of customers. They yearly pay a fixed perc of the initial prize to get support. If they have additional wishes, they have to pay additional per hour or fixedprice.
A new (custom)module is prized the same way: they buy it, normally fixed prize, and the support prize per year rises with the same perc.
The prize for the module is based upon investment in resources plus a risk margin and sometimes devided by the number of clients we know that will buy it.
I don't know how TotalCommander does it, but they charge only once, and give updates for free.
They probably have a very big userbase.
You have to determine the pricing model first that you want to do, for example a one time fee or a subscription service. It is a great question but not one anyone else can answer. You have to have a feel for what the market is willing to pay. You have to decide.
There are only 10 types of people in the world, those who understand binary and those who don't.
1.Efforts for implementation
2.If you are implementing as project then price should be more depend on point 1
3.IF you are implementing as product then it depends on your market penetrating strategy which covers point 1 as well as marketing ,support . it also requires consideration in making enhancement in product as per its market type
I'm working in the automation world, programming robots, CNC, PLC... to get machines work.
In my case the time it takes to make an app is one of the most important factors.
If one cpian asks that here I understand he/she is at least a small company, I don't know how many small companies become as big as Microsoft, but probably billing depending the amount of hours won't be a bad idea.
In the other hand, if you are in the mobile app industry then you have to play with the number of apps you plan to sell and find another way to count the money the app should cost...
So it is not easy to give a proper answer without clarifying the sector the OP works for.
Unfortunately, you are comparing apples and oranges here. When Microsoft launched, there weren't many companies doing what they did. Compare that with the market now, and it becomes apparent that you have to spend a lot more time investing in your software than they did because you have to have a differentiator.
The key question you have to ask yourself is "if I were a customer, why would I choose my product over X" with X being your competition. You must be able to define clear reasons; after all, these are the things you are going to market your product with. Then you enter the cycle of trying to keep one step ahead of X, but that's a whole different story.
*pre-emptive celebratory nipple tassle jiggle* - Sean Ewington
You can search about similar apps and their prices and comparing features of both.
also it is important you notice to other important factors like Country you live, currently market situation and others.
Costing a software product is also based on strategy. You can send it for lesser price at the beginning. So that more users can use your software and once the user base grows you can increase the price. You can read a case study and get some idea from it.
-> Identify the target customers, that you will be makeing your product for.
-> It will be a good idea to approach a few potential customers and have tips frm them on, what all new features they would like to have
-> Built in the flexibility to customized your prouct for the select few clients, and do mention about its customization features in the Product Display Session
-> Try to have some feature that's are not available in competitor's products.
-> With product related to "Employee Related Data". Do make sure that Data retrival speeds are up to the mark.
Do advertise about your produce thats the most imp part, there are alot of grate proucts out there, but what they lack is there, lack of avertisiment on right forums.
Don't wait for the customers, rather be pro-active in identifying the customers and walking to them.
What is the employee related data? With out knowing that can't suggest you.
Now days we have many erp for employee management.So, make your product should consists of existing management service and should have more advantages compared with others.
Hope it will be succeed.
Have a good day Sanjeev.