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Perfect Price
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Perfect Price

fresher_06fresher_06 Member
edited February 2013 in General

Hi All,
We al that most of us over here are either hardcore coders,script kiddies, innovators or some real good businessmen having some real good understanding of the business.
I am a blend of everything above and after doing around 2 years of market research and by learning and coding the website by myself , I have come up with a Online Portal which can do below 5 functions --

1) Point of Sale (POS)
2) Loyalty System
3) Reporting
4) Analytics
5) Marketing

All is working perfectly fine and tested, but now the real hard time has come as one of its first users is asking that how much does it costs and since I am not a businessmen , so I am completely clueless , as in what price should I quote.
So right now I need help of you guys in deciding the price of such Software as a Service product and what all factors should I cover while coming up with any figure.

Thanks

Comments

  • shovenoseshovenose Member, Host Rep

    The perfect price is however much somebody is willing to pay for it.

  • How about a demo of the system?

  • dearroydearroy Member, Host Rep

    Demo please.

  • Demo indeed

  • I think i'm a bit confused: you spent two years doing market research, yet, you don't know what other products in your field are selling for? Or did I miss some info somewhere?

  • @Damian -- yes indeed , I have done the market research for around 2 years and from this i know that these kindaa SaaS costs around 49$-99$ per month on an average depending on the level of service you provide.
    But in my case the first client itself that I have met is really interested in the whole concept and the complete running system, so he simply wanted to buy the whole package and might want to rebrand it in his own name.His question was "How much do you want and how much does this whole system worth" .
    My research was mostly based on the cost of providing the service not for selling the whole of it in a single shot.
    Really confused here , not sure do i ask him to be in the partnership and just keep the IP (intelectual Property) in my name.
    What else do you suggest from the business prospective.

    Thanks

  • I'm (can't believe I am saying this) going to have to agree with @gubbyte. Honestly, that system, would be worth nothing. Any decent programmer can do that.

    You'd have a better chance open sourcing it, then begging for donations.

  • @fresher_06, you are giving very limited details about this "product", so it's hard to judge it.

  • DamianDamian Member
    edited February 2013

    @curtisg said: Honestly, that system, would be worth nothing. Any decent programmer can do that.

    That's actually the point: a decent programmer is required....

    @fresher_06 said: costs around 49$-99$ per month on an average depending on the level of service you provide.

    That would be your pivot then. Don't want to give a lot of support? $49 per month. Willing to hold client 's hands? $99 per month, they're always willing to pay for someone to be there to give them hugs and tell them it's Not That Bad.

    Regarding all of this:

    @fresher_06 said: so he simply wanted to buy the whole package and might want to rebrand it in his own name.His question was "How much do you want and how much does this whole system worth" .

    My research was mostly based on the cost of providing the service not for selling the whole of it in a single shot.
    Really confused here , not sure do i ask him to be in the partnership and just keep the IP (intelectual Property) in my name.
    What else do you suggest from the business prospective.

    Sell him a license to the software for a minimal price (~$500, based on the per-month cost of the service), then sell him a maintenance-and-support contract for $800 per year, and inform him that extended service/upgrade/processes/etc is on an case-by-case basis.

  • @Damian said: Sell him a license to the software for a minimal price (~$500, based on the per-month cost of the service), then sell him a maintenance-and-support contract for $800 per year, and inform him that extended service/upgrade/processes/etc is on an case-by-case basis.

    so you means to say that in total 500+800 = $1300 per year

    With the "license" here means - he can just use it as a service but doesnt own any IP against it.
    Also from his first impression what i can feel is that he is looking to buy in rather than just use it as a service for his own use.
    He seems to like rebranding and then selling by his own name. But i dont want to sell him out everything as I still want to keep the Intellectual Property rights of that code.
    Any suggestions on this?

  • No, no, no.

    That's normally referred to as piece of sh**

  • @fresher_06 said: He seems to like rebranding and then selling by his own name. But i dont want to sell him out everything as I still want to keep the Intellectual Property rights of that code.

    Any suggestions on this?

    Don't sell it to him then.

    Sell him a license. You will retain ownership, he is free to do as he wants with in the terms of the license.

    Its really hard to give any specifics as you are being very vague about things. If you do go down this path consider your costs for having a good lawyer draft the agreement as this will cost.

    That being said, if your product is that good, then you have the option of licensing it to other people.

    I think first up, you need to confirm with your customer if they want to buy it outright (as in ip transfer), or they just want to license it to rebrand into their own product.

  • ztecztec Member
    edited February 2013

    A/B test the shit out of that price. Let your current customer wait until you know the worth or let him make an open bid while you pretend there are more people like him bidding.

  • @fresher_06 said: So right now I need help of you guys in deciding the price of such Software as a Service product and what all factors should I cover while coming up with any figure.

    ONE MILLION DOLLARS!

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