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

[Chris Rehm <javadisciple@xxxxxxxxxxxxx>]

On Tuesday 30 October 2001 10:29 am, Brad Stone wrote:

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

Economics of the software vendor. Trying to provide a strong enough revenue
stream so that they can stay in business without pricing themselves out of
the smaller business markets.

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

I don't think it is possible to answer this on a global basis.

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

Well, I know that if I want graphics for my personal web site, I can get the
same graphic free that I'd have to pay for on my business site. I know that
television stations all pay different amounts for the shows they want to
broadcast depending on their market rather share. For some crazy reason, TV
stations seem willing to let me put an ad on Wednesday morning at 2am for
quite a bit less than during the Superbowl. When I buy electricity I am
charged far less for the first kilowatt than for the 1000th. Same with water
(but in cubic feet).  I am taxed less if I only make $10,000 than if I make
$100,000.

Actually, tier pricing seems to be a lot more common than I thought.

> Brad
> www.bvstools.com

--
Chris Rehm
javadisciple@earthlink.net

And thou shalt love the Lord thy God with all thy heart...
...Thou shalt love thy neighbor as thyself. There is none other
commandment greater than these. Mark 12:30-31