How to Price Software Product? A Take from Owner Software Development in Islamabad, Software House in Islamabad

As an owner Software Development in Islamabad, Software House in Islamabad i must say that you should initiate by understanding the ROI (return on investment) that customers are looking for. One of my clients wanted to grow their topline revenues by doing things like getting their first-time customers to come back and upgrade their memberships. 

I started to understand the value they were looking for from a product, partly in terms of what it could do, but also in terms of what they needed. A second approach I recommend as a Software Development in Islamabad, Software House in Islamabad is to understand substitutes (i.e., other products they are currently using), and explore their limitations. With our customers, I discovered that many people were using Excel or some form of free spreadsheets. So I’d ask them, "What do you do when you need to share your data with your accountant? What happens if your office floods or your computer gets stolen?" They hadn’t thought about those situations. Maybe backing up their data using a service in the cloud would be prudent and worth paying for!

Realize that if your product is in a particular category, there may be a price floor and ceiling. Luxury goods have a price floor, and if you try to price below it, people will question the value of the product. Non-luxury products have price ceilings that are often set by competitors and reinforced if the market is crowded.

I mentioned above that customers need to understand that your pricing is not just about the product but the experience too, and they should be including that in their ROI. This is known as value pricing.

It’s up to you to figure out what the customer values, make sure those values are evident to them, and then translate that into an amount they are willing to pay for. Time, convenience, and exclusivity (to convey status or a persona) are things that people value. However, some are more likely to put a higher or lower price on each of these things.

Being owner of a Software Development in Islamabad, Software House in Islamabad let me introduce you with another type of pricing known as impact pricing, which is basically answering the question, "How easy is it to pay?" Amazon’s 1-click is the best example, because it appeals to people’s desire for instant gratification: "I gotta have it now!"