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1996-01-01
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#: 69814 S20/Marketing OS/2 Apps
31-Dec-95 16:03:45
Sb: #69708-#types of innovation
Fm: Terry Norton [IdeaFarm] 71540,3161
To: Buck Bohac 70670,2352
>> How do you respond to these questions?
>> unlimited use license.
>> wait until I could afford the software
>> own it outright
>> have some equity.
All very good questions, and my job is to wash away the preconceived
misconceptions.
Meterware is nothing more than another way to BUY the software. You are NOT
renting, any more than a user would be renting if he paid by credit card and
made monthly payments. Meterware is better because:
-the user isn't paying any credit card interest;
-no credit line required;
-no "pay full price" first, which shrinkwrap and, usually, shareware require;
-no payments due monthly, whether the app is used or not.
License:
This doesn't change. Once again, how you decide to pay for the software:
credit card, cash, check, precious stones, T-Bill, meter, etc., has no
bearing
on the use license.
Own outright:
If you save up first to buy - Say you save for 3 to 4 or more months to buy
an
app, you pay your money and own it. Now lets say you download a metered app
-
you use it and reach the cap (full price) in the same 3 to 4 or more months,
you've paid your money and own it. Either way, you've paid the price,
there's
no more costs, but as a metered app, you were able to use it those 3 to 4 or
more months instead of just wishing you did.
Jon and I have been trying to excite the developers, but because of
misconceptions, and the fact that it's different, they appear to be ignoring
the potential. Two potential areas are greatly increased user base, and as a
result, more income.
As an example, an author can sell app XYZ for $40 to 1 user and make $40. Or
he could sell it for $10 to 4 users; or $4 to 10 users. Either way he makes
$40. But the users have to buy it first.
As metered, the author isn't requiring a user to pay first. More users will
be willing to look at an app that's fully functional from the get-go. If a
user doesn't continue to use the app, it's probably because the user has
decided he doesn't need it, or perhaps it's not as good as something else,
or..., but it won't be because the price got in the way.
I haven't seen any studies, but I'd bet there's a price "sweet spot" for
shareware. Too much higher and sales decline due to the price to buy; too
much lower and sales decline because it's not worth the hassle. Metering
would enlarge the "sweet spot." The low priced apps and utilities simply are
paid for quickly and the user doesn't have to do anything except use them.
High priced apps would still be high priced, but not having to fork over all
the dough at once makes it easier to buy.
>> Have you done any preliminary surveys to end users?
No, but I'm working on it.
Terry [IdeaFarm] (OS2BVEN 1) OS/2ing on 31-Dec-95 at 3:15p Vermont time
There is 1 Reply.
#: 69832 S20/Marketing OS/2 Apps
31-Dec-95 21:05:14
Sb: Shareware pricing
Fm: Esther Schindler [EXEC] 72241,1417
To: Terry Norton 71540,3161
<<< Start new thread from # 69814-types of innovation in S20 >>>
> I haven't seen any studies, but I'd bet there's a price "sweet
> spot" for shareware. Too much higher and sales decline due to the
> price to buy; too much lower and sales decline because it's not
> worth the hassle.
I've seen studies. I've corresponded with OS/2 shareware developers, and I
know their registration numbers. I don't believe your assumption is correct.
Shareware registration seems to be tied to the nature of the application, how
often the user uses it (in conjunction with a fair balance between nagging and
guilt screens), and most of all *product quality.* Money apparently has almost
nothing to do with it -- though obviously if it's way too high people don't
buy it because it's no longer a good value, just as with shrinkware.
Shareware has a lot of challenges, but pricing is nowhere near the top.
--Esther