Comments on: Calculating volume discounts for software http://successfulsoftware.net/2008/03/07/calculating-volume-discounts-for-software/ Successful software requires more than just good programming. Thu, 02 Feb 2012 08:34:56 +0000 hourly 1 http://wordpress.com/ By: anthonyx26 http://successfulsoftware.net/2008/03/07/calculating-volume-discounts-for-software/#comment-13830 Fri, 12 Feb 2010 17:28:10 +0000 http://successfulsoftware.wordpress.com/?p=306#comment-13830 While this thread is a little old, I thought I’d contribute my work on the original Excel software discount pricing sheet (as it served me for inspiration). I’ve been trying to nail down a good strategy for software pricing and I think I found one in the following Excel sheet:
http://71.184.222.31/public/SoftwareAndSupportVolumeAndPrepayDiscounts.xlsx

[format Excel 2007]

I tried to shape it so that it takes into account volume discounts as well as maintenance/support (with pre/post paid pricing options).

While I’m sure it’s not perfect, it seems like it offers a pretty good way to calculate out software costs.

Thoughts?

- anthonyx26

]]> By: Andy Brice http://successfulsoftware.net/2008/03/07/calculating-volume-discounts-for-software/#comment-10600 Sat, 12 Jul 2008 13:39:29 +0000 http://successfulsoftware.wordpress.com/?p=306#comment-10600 Joannes,

My current approach is not to publish discounts, but to ask them to contact me for a discount if they want to buy 5+ licences. I will then quote them a discount roughly in line with my formula, but tailored to what they can afford/what the software is worth to them, i.e. more generous for a charity.

]]> By: Joannes Vermorel - Lokad.com http://successfulsoftware.net/2008/03/07/calculating-volume-discounts-for-software/#comment-9280 Fri, 07 Mar 2008 21:57:35 +0000 http://successfulsoftware.wordpress.com/?p=306#comment-9280 Actually, Lokad (my own uISV) is explicitly using this formula with f=2/3 (see http://www.lokad.com/Pricing.ashx ), thus we are quite aggressive with bulk discounts. But, I think that the question quickly becomes: how much can you increase your sales through bulk discounts? Any idea on the subject?

Best regards,
Joannès

]]> By: Andy Brice http://successfulsoftware.net/2008/03/07/calculating-volume-discounts-for-software/#comment-9279 Fri, 07 Mar 2008 21:54:24 +0000 http://successfulsoftware.wordpress.com/?p=306#comment-9279 Stephane,

Including average support cost in the fixed cost is a good idea.

]]> By: stephane Grenier http://successfulsoftware.net/2008/03/07/calculating-volume-discounts-for-software/#comment-9278 Fri, 07 Mar 2008 21:45:45 +0000 http://successfulsoftware.wordpress.com/?p=306#comment-9278 Hi Andy,

One thing I would add is the cost of support when you calculate discounting. In other words, include your average support cost per unit to the calculation. For some companies this might be minimal, but for others it can quickly become significant.

Great article BTW!

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