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Andy Brice
Successful Software

Doug Nebeker ("Doug")

Jonathan Matthews
Creator of DeepTrawl, CloudTrawl, and LeapDoc

Nicholas Hebb
BreezeTree Software

Bob Walsh
host, Startup Success Podcast author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality

Patrick McKenzie
Bingo Card Creator

Low price but with minimum order?

I'm toying with an idea for a *recurring* service that fills a need, but want to make it only a single dollar to provide.  So, someone wants me to do it, it costs them $1.  However, financially this is such a micro-payment that it's probably hard to manage, so do you think there's any big deal with marketing it as a minimum order of $20, which gets the buyer 20 services to use as they see fit?

I'm worried that it comes across as misleading, eg. they get enticed by only $1 to get a job done, but really they're actually forking out $20 up-front.  They still get 20 uses out of it, though, which equates to the $1 per job.

What do you think?
PSB136 Send private email
Sunday, December 28, 2014
And no, the remaining 19 uses don't expire, or get forfeited for any reason.
PSB136 Send private email
Sunday, December 28, 2014
If it's clear in text on the web site, it's clear. If it says you sell blocks of 20 for $20, it's clear.

When are you going to launch something finally?? (Not that I should talk!!).
Racky Send private email
Sunday, December 28, 2014
Yes, it'll be clear on my site about the minimum block size.

As for launching, I always get motivated when a new year starts, so we'll see.  Still finalizing a lot of things.  To be honest, the license to get people to pay is the hardest part.  I'm favoring a freemium-style model at the moment.
PSB136 Send private email
Sunday, December 28, 2014
How likely I am to use 20 units of what you are selling? Or, to put it another way, how likely I am to end up using one unit for $20?

In that regard, how about making an offer that is almost too good to be true, such as "Buy this X-pack for $X, and if you don't use them all within the next Y months, we'll do a full refund automatically"?
Dmitry Leskov Send private email
Monday, December 29, 2014
I'm actually drunk right now and thinking of throwing in the otwel anyway, as I know deep down I'll bever get anywhere in life.  All this dreams of making money is justy bullshit.  If i was meant to make it by noiw then I would.  I think tyhis forum just gives me a false senxse of hope most of the time.  Nice to chat here but nothing will come of it..
PSB136 Send private email
Monday, December 29, 2014
I have to make it work for my kids, though... I don't want them to grow up in poverty or missing out all the time.  So sad to see them growing upo but I can;t help their future.  Soetimes I wonder if they will end doing something sucxcesdsful and can help me.  Dammmit.  Why is life so ghard?  I';m such a loser.  What can I sell?
PSB136 Send private email
Monday, December 29, 2014
There's no shame in that. This is not an easy path. Sure, there's the dramatic success stories here and there where some 16 year old spends a weekend coding a script, then a few years later he flips it to FB or Google for a billion or more.

In reality they usually spent more than a weekend on it, and those cases of big payouts and early retirement are so rare that they can be counted on two hands.

The typical story is huge work followed by total failure.

The next most typical story is huge work and extended poverty, followed by modest success, eventually over 10+ years leading to a decent living.

Working a corporate gig can be a pretty good gig. You have less freedom and you have someone telling you what to do, and it's usually dumb ideas that waste your time. And there's politics. But there's benefits, and a consistent salary you can depend upon. That's a pretty good deal.

Of course if one is smart enough to develop good software, that level of brightness will also make a good lawyer, psychotherapist, surgeon, or various other jobs that pay quite a bit more. So if one is clever, and doesn't want to run a software startup, there are other careers one might want to look at.
Scott Send private email
Monday, December 29, 2014
OMG, looking back now at my drinking self... don't know what to think.  It's half-funny to read and half-sad.  I certainly don't feel that way today.  I still feel enthused about "making it" one day, but perhaps my subconscious knows something I don't.  LOL!  Very strange reading the above.
PSB136 Send private email
Tuesday, December 30, 2014

Don't feel too bad. I am never drunk and routinely ask myself, as you so well put it, "Why is life so ghard?" At least you can blame it on the EtOH.

Just launch something with the goal of making $14 AUD by Groundhog's Day, just for the heck of it.
Racky Send private email
Tuesday, December 30, 2014
I don't know anyone who has created a successful software product and said it was easy.
Andy Brice Send private email
Tuesday, December 30, 2014
Any forum that can make me laugh as much as this thread did is not a dead forum :o)

Reluctantlyregistered Send private email
Tuesday, December 30, 2014
Yeah, it's pretty funny when I read "I'm such a loser" about myself.  :)  Ah, life: how thee cracks me up.
PSB136 Send private email
Wednesday, December 31, 2014
>When are you going to launch something finally?? (Not that I should talk!!).

That makes three of us.  I have read that it is important to know why you are starting a business and write it down.  @psb136 is what your drunk self wrote the actual reason for doing it?
Dora Send private email
Wednesday, December 31, 2014
Dora: yes.  Wife and 3 kids under ten on one income (mine).  I'm 44 and renting a unit/aparment to live in.  Shouldn't complain I know, because people live on the streets.  Just sad that the kids don't have a backyard to play in.  No air-conditioning either, and it's 30+ degrees (86+ fahrenheit) here on a daily basis (Australia).  Watching them sweat here every day breaks my heart.  I have to spritz them with a water bottle to keep them cool.  They can't play in the complex because kids aren't allowed to, and even had a neighbour tell us off twice in the last month because I sat out the front while they played and rode their bikes.  Spoilt-sports.  They were kids once.

I know I need to make something to sell.  It's so hard.  No guarantees of success.  I'll keep trying.  I don't want to give up because of my age, because if I don't get a worthy income soon, then I'll be too old to qualify for a mortgage (if I'm not too old already).

Sorry for this New Year's lament.  It's nice to vent, though.  Thanks for listening.  I hope to make it one day and post here with success stories of good sales.  Have a good day.
PSB136 Send private email
Wednesday, December 31, 2014
Looks like you need some motivating video here.
Watch this:

Don't stop, do what you plan, never give-up.

As for topic, looks like you are thinking about "price hack". What if I make the price 20x times less to attract more attention, but make minimum package of 20 to not lose in average order value? Will it work?..

I don't like any ideas about how to make price lower. For me personally it's easier to charge more, than charge less.

If you doesn't fill the expectations of the user, you can always make the refund, but if you charge more you have more resources to provide good service and prevent refunds.

For $20 sale you can spend ~0,5-1 hour on supporting, for $75 it's OK to spend 2. For $1 it's lazy even open the email with question, it's better to do autorefund feature for those, who are not satisfied. The more you charge for your software, the more money you have on advertising, good copywriting, SEO, good coders, marketer, etc. = you have more chances to make good product and service.

People don't remember prices, they remember their emotions! I would choose to pay $100 and be happy in the result than poy $1 and be sad. Don't you think the same?

So, think about how to add more VALUE to your product, not about how to make it cheaper.

Regards, Roman Rudnik.
  http://www.IconDesignLAB.com - Icon Design + websites, logotypes, skins, other...
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  http://jetScreenshot.com - a must have for every shareware author
Roman Rudnik Send private email
Thursday, January 08, 2015

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