I have this question that I want to share and also want to get some inputs from you all. I have been trying to understand how individuals and companies set price for their software.
What I found out are list below.
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By using the available market price from their competitors to decide.
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Estimate the total cost of the software and break it down based on possible return on investment.
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Sample intended customers opinion on the price they are will to pay.
My personal experience
I wrote this Android Food Ordering App and I set the selling price for the source code initially at $30.
With $30 I was selling 1 copy every week which is equivalent to $120 in a month
Then I changed the price to $20 and I was selling 2 copies in a week ($40) which is around $160 a month
Finally, I changed the price to $10 and right now I am selling between 5 - 7 copies in a week ($50 -$70) which is around $200 - $300
Please note that I only sell source code on my website. May be I would have made more if I upload it on other app source code selling websites.
But my main question is does an individual and company decide their software price irrespective of what majority of their intended customers are willing to pay?.
I have seen and read about products that died because of wrong pricing.
Also, under pricing is an evil.
How then will you feel satisfied with your price on a software?
Your input is highly need.
