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Don't Just Roll The Dice - A usefully short guide to software pricing Kindle Edition

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Editorial Reviews

About the Author

Neil Davidson is co-founder and joint CEO of Red Gate Software. Red Gate was founded in 1999 and now employs some 150 people. It was Cambridge News business of the year in 2006 and has been in the Sunday Times top 100 companies to work for three years running. It was founded with no VC money and little debt. Neil is also founder of the annual Business of Software conference and runs the Business of Software social network.


Product Details

  • File Size: 934 KB
  • Print Length: 84 pages
  • Publisher: Red Gate Books; 1 edition (October 1, 2009)
  • Publication Date: October 1, 2009
  • Sold by: Amazon Digital Services, Inc.
  • Language: English
  • ASIN: B003XVYKRW
  • Text-to-Speech: Enabled
  • X-Ray:
  • Word Wise: Not Enabled
  • Lending: Enabled
  • Enhanced Typesetting: Enabled
  • Amazon Best Sellers Rank: #345,377 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Customer Reviews

Most Helpful Customer Reviews

4 of 4 people found the following review helpful By Dan Nunan on October 21, 2009
Format: Paperback
This short, but not overly short, book is a great primer on any sort of product pricing. Whilst the content is aimed at software products, it has wider appeal to any sort of product business. The content is varied and original, and is worth putting in front of anyone who doesn't understand the role of customer perceptions in pricing decisions. It's essential reading for anyone who's ever said "no-one will ever pay more than $50 for my product" without actually trying different pricing strategies.

Given that there isn't really anything else that covers this topic well, I only have two very minor points to make.

Firstly, it doesn't really cover the services side of software. This isn't authors goal for the book, but the content is most helpful if you are selling products.

Secondly, I would have liked to see more action photos of the author wielding his calculator whilst in the process of pricing. Leaving this to the readers imagination was, in my opinion, an editorial oversight.
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2 of 2 people found the following review helpful By Thomas Duff HALL OF FAMETOP 1000 REVIEWERVINE VOICE on November 15, 2009
Format: Paperback
If you've created software for sale, you have dealt with the all-important question... what do I charge for it? Neil Davidson does an excellent job in helping you figure out the answer in his book Don't Just Roll The Dice - A usefully short guide to software pricing. He doesn't tell you *what* to charge. Instead, he give you a short lesson on how to come up with the best pricing strategy given your situation. And best of all, he does it in a concise 73 pages. I was impressed!

Contents: Some - but not too much - Economics; Pricing Psychology - What is your product worth?; Pricing Pitfalls; Advanced Pricing; What your price says about you (and how to change it); Product Pricing Checklist

It's tempting to think that the cheaper you price your software, the more you'll make. But Davidson puts that misconception to rest right at the start. Depending on your target audience, cheap pricing may either leave money on the table or cause people to perceive your software as low-value. Davidson helps you understand your market and develop a pricing strategy that can maximize the profit you receive from your hard work. He also outlines a number of mistakes that are common and lead to people turning to alternatives without considering your product. For instance, some companies try to throw a variety of different feature combinations at a purchaser, all with different price points. But unless it's easy to assign value to the different features, too many combinations can cause the purchaser to either buy the cheapest or most expensive combination just to save the mental anguish. That means that potential purchasers may again bolt for other alternatives, or you could end up leaving money on the table.
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2 of 2 people found the following review helpful By Erik Gfesser VINE VOICE on December 27, 2009
Format: Paperback
This white paper sized introductory guide to software pricing is very well put together. After Davidson walks the reader through some basic concepts from economics and marketing that specifically relate to pricing software products, he addresses some of the more advanced aspects of pricing that include areas such as versioning, bundling, and licenses. The discussion provided in the fifth chapter, "What Your Price Says About You (and How to Change It)" is especially well written. The author reminds the reader that one should never forget that practice trumps theory, and that product pricing is as much art and craft as it is science: "Sure, it helps to understand the economics and psychology of pricing, but theory can only tell you so much. At some point, you need to make a decision and do it. Use the information in this handbook to make an informed stab at what a good price would look like, and how your customers will react, and try it out. The exact price almost doesn't matter - get it broadly right, don't screw up totally - and you can tweak it later. You're never going to know if you've chosen the exact right price or not, but you should experiment once you've set your initial price; not experiment in the scientific sense of forming a hypothesis, changing a single variable, and accepting or rejecting the hypothesis, but in the sense of changing something and seeing what happens." Especially well recommended to those new to economics and marketing theory. Note that this book is currently available free of charge as a PDF document download at the author's "dontjustrollthedice" website.
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2 of 2 people found the following review helpful By Leonardo Vernazza on October 23, 2009
Format: Paperback
After reading Free: The Future of a Radical Price and this book in two weeks, I have a clearer idea of the full Pricing thories and trends in software. I highly recommend to read both books together as they show complementary data.

Free might be the answer for extremely huge companies, but the rest 95% will still need to take this guide into account ;)

I found this book with a better content-size rate and very well written. Highly recomendable.
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2 of 2 people found the following review helpful By R. A. Cramblitt on November 16, 2009
Format: Paperback
Neil Davidson has subtitled his book, "A usefully short guide to software pricing." I think he shortchanges himself and the book. This is a tremendously valuable book. If you're involved in pricing software, it's priceless. If you're pricing anything else, it's extraordinarily useful.

Believe the "short" part too. Only takes about an hour to read. Read it on the plane, train, during lunch, in the john. You'll thank yourself afterwards.
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