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. Sun, 06 Jul 2008 05:44:20 +0000 http://wordpress.org/?v=MU By: Joannes Vermorel - Lokad.com http://successfulsoftware.net/2008/03/07/calculating-volume-discounts-for-software/#comment-9280 Joannes Vermorel - Lokad.com 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 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 Andy Brice 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. 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 stephane Grenier 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! 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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