Re: Tierred pricing (was Tiger tools...)

[rob@xxxxxxxxx]

I've had a software house admit that if the market would bear, they would
charge more for a smaller customer.  They don't usually have the front line
support of people that larger customers have.

I remember an old Steve Martin routine which went something like he
realized that he got less attendance with higher ticket prices but his goal
was to charge a million $ to a one person audience.

But I think it was Henry Ford who remarked that he'd rather have a million
people making him a dollar than one person making him a million dollars.
Modern management would remark that it would be too much overhead.

Rob Berendt

==================
"They that can give up essential liberty to obtain a little temporary
safety deserve neither liberty nor safety."
Benjamin Franklin



                    "Brad Stone"
                    <brad@bvstools.com>       To:     midrange-l@midrange.com
                    Sent by:                  cc:
                    midrange-l-admin@mi       Fax to:
                    drange.com                Subject:     Tierred pricing (was 
Tiger tools...)


                    10/30/2001 01:29 PM
                    Please respond to
                    midrange-l






A lot of interesting points are being discussed here, but
I'd like some simple answers as it seems tierred pricing
always comes up.

1.  Besides the fact that it's the "norm", what reasons are
given for the need to price software on a tierred level?

2.  Does the software for a larger machine require more
coding, support etc. to make up for the difference?

3.  What other industries tier their pricing for the SAME
product?  (ie gas costs the same for a ferrari and a tempo).

Brad
www.bvstools.com
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