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by edw
2294 days ago
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Joel Spolsky wrote about this in detail, OMG, fifteen years ago: > There’s no software priced between $1000 and $75,000. I’ll tell you why. The minute you charge more than $1000 you need to get serious corporate signoffs. You need a line item in their budget. You need purchasing managers and CEO approval and competitive bids and paperwork. So you need to send a salesperson out to the customer to do PowerPoint, with his airfare, golf course memberships, and $19.95 porn movies at the Ritz Carlton. And with all this, the cost of making one successful sale is going to average about $50,000. If you’re sending salespeople out to customers and charging less than $75,000, you’re losing money. https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-... |
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Monthly billing changes his numbers drastically - because now software priced at $1000 is sold as $100 per month instead.