One of the articles that I read recently contained a reference to this book. So I checked it out. Just 70 pages so easily digestible over a couple of days. And the subject is software pricing.
Davidson begins with a short dose of economics. Nothing complex. Just a few basics like the Demand Curve. The second chapter on Pricing Psychology makes an important point that in order to price your product right you need to be aware of two things - one, what is your product and two, what is its perceived value to the customers. Then it goes on to explain how people perceive values and how that can be influenced. Chapter 3 covers pricing pitfalls like e.g. setting the price too low or too high.
The next chapter is about advanced pricing techniques such as different kinds of versions and how to use them to steer the customers to your intended price point, Bundling, Multi-user as well as Multi-site licenses and free trials. It also has a section on pricing models. The last chapter sort of ties the whole book up with the product pricing checklist. If you are too busy to wade through even 70 pages, just go through this checklist.
In a nutshell, this is a good book to turn to if you are looking for an overview of software pricing as well as a few pointers on how to (and how not to!) go about it. Sure, it contains examples from real world to illustrate concepts but there are no detailed case studies. That said, this would be a good first step in the study of software pricing before turning to bulkier volumes.
P.S. Somewhere in the last chapter, the author says 'It's more useful to fix the problem than to understand why it's broken.' That's the only advice that I found hard to digest.
Davidson begins with a short dose of economics. Nothing complex. Just a few basics like the Demand Curve. The second chapter on Pricing Psychology makes an important point that in order to price your product right you need to be aware of two things - one, what is your product and two, what is its perceived value to the customers. Then it goes on to explain how people perceive values and how that can be influenced. Chapter 3 covers pricing pitfalls like e.g. setting the price too low or too high.
The next chapter is about advanced pricing techniques such as different kinds of versions and how to use them to steer the customers to your intended price point, Bundling, Multi-user as well as Multi-site licenses and free trials. It also has a section on pricing models. The last chapter sort of ties the whole book up with the product pricing checklist. If you are too busy to wade through even 70 pages, just go through this checklist.
In a nutshell, this is a good book to turn to if you are looking for an overview of software pricing as well as a few pointers on how to (and how not to!) go about it. Sure, it contains examples from real world to illustrate concepts but there are no detailed case studies. That said, this would be a good first step in the study of software pricing before turning to bulkier volumes.
P.S. Somewhere in the last chapter, the author says 'It's more useful to fix the problem than to understand why it's broken.' That's the only advice that I found hard to digest.
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