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ERIC SINK ON THE BUSINESS OF SOFTWARE by Eric Sink

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Twenty-FourPRODUCT PRICING PRIMER

Most geek entrepreneurs ask the wrong questions about pricing. I regularly see people on forums asking for advice. Usually they're trying to decide between three price points like $39, $49, or $59. That's a valid question, but only after you have contemplated whether to price your product at $499.

Geeks hate the subject of pricing. We like things to make sense, and it seems like pricing rarely does.

As developers, most of us had to take lots of math classes. Math involves numbers. Pricing involves numbers. In math, there is only one right answer. In pricing, there is almost never one right answer. Who made these rules anyway?

Suppose I want to buy a wristwatch. I can spend anywhere from $3 to $30,000. Regardless ...

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