[Be el o ge]

Neil Davidson’s book is an excellent, short, easy to read guide to software pricing. It all starts with some very basic economics: what’s the best middle ground between quantity (number of sold products) and price. At which ratio can you maximize your revenue?

Further Davidson advises that you should first think about what you actually want to sell. Better to say: What’s your actually product? In most cases this is not just the software, it’s additional services, support, reassurance and eventually many other things.

After these two introductory chapters, Davidson comes to to the core of the topic: Chapter 3 – Pricing Pitfalls: Keep an eye on your competitors, be fair to your customer and finally chapter 4: Advanced Pricing meaning: versioning, bundling, multi user licenses, site licenses and the popular freemium model. Last but not least chapter 5 talks about what the price of your product says about you and how you can change it if you don’t like what it says. The last chapter is a very useful checklist about product pricing.

The book is available for free on the web or you an buy a paper copy at Amazon.