On Fri, Jul 15, 2011 at 8:51 AM, Bob Meetin <bobm at dottedi.biz> wrote: > but no way will they pay full price. Huh? Again, I ask why. Your first customer was willing to pay full price. It sounds to me like this is a problem with your thinking, not theirs. And just to screw with your brain even more, most products that come about like this... where the development is largely funded by a services project... they usually GO UP in price once it is productized and sold that way. > This doesn't go over well with many/most of my small business owner clients. What doesn't go over well? That you have a product that solves their problem at the same price as a consulting engagement, except there is no risk of going over budget or beyond the timeline or that it will be a failure altogether? Again, if you are having these discussions with clients and they aren't going well, you should consider how you are framing it. There is no reason why a customer would prefer you to spend months on a consulting engagement that might not pan out vs getting a productized version of the proven solution immediately. > The answer, I feel, is situationally dependent. Some of this may depend on > how deeply you can dig in your heels, take a stand. I think it depends more on whether you can transition your mindset to sell a product. Most services people, I've found, cannot. Your development time has nothing to do with the purchase price (except as providing a min). It is IP you are selling to solve the customer's problem, and your price depends on how they value solving that problem. If anything a product should sell at a premium to an equivalent services solution. Now where your ongoing development costs DO come in is in annual maintenance fees (18-22% of purchase price, annually), assuming you charge them. Which you should. -- Matt Warden http://mattwarden.com This email proudly and graciously contributes to entropy.