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* The Business of Software

I've finally decided to get off my duff and do the price hike I've been mulling for a while.

Downloadable version : $24.95 -> $29.95
CD version: $29.95 -> $37.45

Why: Well, when I started Bingo Card Creator I had that all-too-common thought that it wasn't worth charging money for.  (I was scared out of my whits to charge $15 for it, and "Charge more!" remains the best advice I have ever gotten here.) 

My customers have showed me over the last 18 months that it is indeed worth charging for.  Half of them already pay the new price, since they buy the CD version. 

I also am folding my Daily Bingo Cards word lists into the program and slapping 2.0 on it, so 200 extra activities ought to provide a wee bit of a boost in value, but really I don't think I need to do anything to justify a price increase.

When: I'm updating my site probably today or tomorrow to reflect the new prices, but will be essentially implementing them on Feburary 1st, as I'm also announcing a January Back to School Sale which essentially preserves the old prices.  I figure that is a nice way to ease my current trial users into the new pricing regime, as typically nobody buys my software between 12/15 and 1/5, and then there is a flood of folks buying for the start of the term.

Good luck.  We recently did something similar, and it was one of the best things we've done for our income stream.

Same philosophy will be applied to our upcoming software products ... build something small, charge a little.  Add features over several months, raise the pricing.

Good luck, I'm sure you'll be fine!

We recently raised prices and found no problems. However, this wasn't simply done to get more cash in the pocket but to compensate for the falling US dollar (we are Australian).

Good luck Patrick:

Make sure and report back about the changes in both the revenue generated and in the number of sales made. 

It's also easy to justify a price increase with inflation.  I mean, a McDonald's Big Mac is >$2.50.  I remember buying them for $.99 not that long ago.

I really admire the Bingo Card creator. To be honest I used to think things like: "It sounds and looks like a high school project, who would buy that? Why should I listen to any advice from this guy he's having a laugh isn't he?".

However, I now realise it seems to be a perfect microISV product. It has a very defined vertical market, does exactly what it says and provides value to the customers. All the best Patrick!

I raised my prices substantially a couple of years ago, the number of orders actually went up. Some customers seem to value a product by how much it costs.

Good luck!

Raising prices is a very addictive past time, as it always (in my experience) produces more customers.

I raised my price from £17.95 to £19.95 when I went from v2 to v3. No discernible downward impact on sales.

You can always put the price down again if it doesn't work out.

Let us know how you get on.

While you're increasing the price, why not increase the value as well:

try {
  UIManager.setLookAndFeel(
    UIManager.getSystemLookAndFeelClassName());
} catch (Exception e) {
}

Look out.  Here comes Larry Ellison into your market.

37.45 is kind of a weird price. I know it's related to $37.50 but it just feels odd.

" 37.45 is kind of a weird price. I know it's related to $37.50 but it just feels odd."

Is it possible that $37.45 is the pre-tax price???

-Andrew

Mark my words, a year from now you'll look back on this post and give a little chuckle.  You'll be fine.

I raised prices last October, and it didn't seem to affect sales, but it did increase revenue substantially. I sell mainly to large businesses, so prices aren't that important to my customers, my $20 - $100 price range is small change for the majority of them.

IMHO, the wealthier customers are a lot less bother tech support wise, which is another reason to raise prices.