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

Neil Davidson
4.8 out of 5 stars  See all reviews (28 customer reviews)

Print List Price: $12.99
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Book Description

How do you price your software? Is it art, science or magic? How much attention should you pay to your competitors? This short handbook will provide you with the theory, practical advice and case studies you need to stop yourself from reaching for the dice.

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)
  • Sold by: Amazon Digital Services, Inc.
  • Language: English
  • Text-to-Speech: Enabled
  • X-Ray:
  • Word Wise: Not Enabled
  • Lending: Enabled
  • Amazon Best Sellers Rank: #459,838 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Customer Reviews

4.8 out of 5 stars
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Most Helpful Customer Reviews
4 of 4 people found the following review helpful
5.0 out of 5 stars Great primer on product pricing October 21, 2009
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
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
5.0 out of 5 stars Well written discussion on software pricing December 27, 2009
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
5.0 out of 5 stars Best "Software Pricing" summary you can get October 23, 2009
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
5.0 out of 5 stars If you want to price ANYTHING, make an hour for this book November 16, 2009
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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Most Recent Customer Reviews
1.0 out of 5 stars ??
Never heard of this book.
Published 8 months ago by Ray Bissonette
5.0 out of 5 stars Brilliant book
One of the most helpful book I ever read about pricing. It really helped me today to think about the price I'm going to practice. Thank you a lot Mr. Davidson.
Published 10 months ago by Guillaume T.
5.0 out of 5 stars Just, to the point, and delivers what it promises.
Just, to the point, and delivers what it promises.
Published 10 months ago by Steven A McLeod
5.0 out of 5 stars Excellent!
Great little guide to the mystery of pricing software. Informative, practical, insightful and easy to read. I would recommend it highly.
Published 14 months ago by AOD
5.0 out of 5 stars Invaluable and a quick read
Practical, to the point, insightful. I did not expect it to have so much relevant content, and to provide me with a framework for thinking about pricing my software. Read more
Published 20 months ago by G. J. Choza
5.0 out of 5 stars Don't set your prices before reading this!
Software pricing in the new world of freeware and the cloud is fraught with dangers. this book gives a practical and well evidenced approach to how you should price your software... Read more
Published on February 15, 2012 by SB
5.0 out of 5 stars Very useful
Straight to the point, focused, with very good examples, deep enough to make you think. It's short and very easy to read. Read more
Published on February 10, 2012 by Javier
5.0 out of 5 stars Very good info on software pricing
I just finished this book for the 2nd time. It gives very practical info on how to price your software. Read more
Published on January 2, 2012 by Phil Sherwood
5.0 out of 5 stars Succinct
Having recently started my own software company, I found the technical aspect is easier when compared to the business model and especially how you price your software. Read more
Published on December 13, 2011 by Dennis
5.0 out of 5 stars Does what it says on the tin
"Don't Just Roll the Dice" actually is a useful and short guide to software pricing. Although the book focuses on software, a lot probably applies to any product really. Read more
Published on May 18, 2011 by Richard Muscat
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