1 Value-Based Pricing For New Software Products : Strategy Insights for Developers

@inproceedings{Harmon20041VP,
  title={1 Value-Based Pricing For New Software Products : Strategy Insights for Developers},
  author={Robert R. Harmon and David Raffo and Stuart R. Faulk},
  year={2004}
}
Software pricing has traditionally been focused on the vendor’s internal business objectives of covering costs, achieving specified margins, and meeting the competition. Pricing methods such as flat price, tiered pricing, MIPS-based, usage-based, per user, per seat, and pay as you go, are often tactical in nature and easily matched by competitors, which can undermine profitability by accelerating the commoditization process. Conversely, a value-based approach charges a price based on the… CONTINUE READING
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