by Adam Juda on Friday, October 31, 2014
As the author of Charge Like a Rhino: The Software Pricing Handbook, a lot of people have been asking me questions about how to price their products (software or otherwise).
Needless to say, everyone was aghast when I announced that my next book would be priced significantly lower than my first.
Was this an admission of failure? A testament to the need to compete via low pricing?
Certainly not! It's but an admission that a product's price is dependent upon many factors.
My next book (focused on public speaking) will be very different from my first, so it is of no surprise that its pricing structure will be different.Here are a few reasons why:
- Different customers - My new book will be targeted to a different audience with a lower willingness to pay. My last book was directed toward people trying to strengthen their businesses. Paying $50 or more is a tiny price to achieve a business goal - perhaps the price of an hour or two of a mediocre college intern's time. This book will be aimed at the general public. The average buyer of my new book may want to improve his speaking skill, but be unable to defend the purchase price with increased income expectations.
- Increased competition - My previous book focused on a very niche area (pricing strategy for software systems). There really aren't many competing products in that field, and to be honest, all of the others were awful. My new book will be focused on public speaking. There are many great resources available, ranging from classes to books to videos. With so much competition, many customers will be unwilling to pay higher prices.
- Different sales platform - My last book was sold on my homepage. Customers' expectations were malleable there because I controlled the sales channel. There were no mentions of competing products and no prior expectations when visitors arrived.
- Walled garden considerations - My new book will be sold on Amazon, and the company significantly reduces the revenue share for items priced below $2.99 or above $9.99. Using an external market, I lose a great deal of control over my pricing strategy.
- Different goals - My last book was priced with the dual mandates of maximizing profit and raising my reputation in the area of software pricing. My new book will be written with the primary goal of maximizing readership. As such, a high price is significantly less desirable.
In the meantime, you're welcome to check out my first book Charge Like a Rhino: The Software Pricing Handbook.
As always, feel free to sign up for my very low-volume mailing list to get updates on all my upcoming works.
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