Re: OO benefits? (was Re: Fast400 Value to iSeries community is less thanzero )

[steven.ryan@xxxxxxxxxxxx]

<snip>
The second reason is that our prospects seem to evaluate unknown
software on price. If you don't know the brand, price equals
value. We did the good thing and priced our software as cheaply as
we could, thinking that would make it more attractive. It works
fine unless a competitor enters the picture. The prospect sees
that their product costs three times as much, and we start getting
the cold shoulder. We can beat them on features and ease of use,
support for multiple hosts and universal clients, but it's too
late to raise the price. "It must be better because it costs so
much more."
< end snip>

There was a case here in Australia (you've probably had the same in the US)
where a shirt company decided to put their business shirts into plastic
bags, rather than into the usual boxes (with 20 pins holding it in place).
They even knocked a couple of dollars off the price, because they were
quicker to pack.  The result - hardly any sold.  The consumer felt the ones
in a box must be better quality than in a plain bag because they cost more
(and looked better).

Perception of the product, as you note, often falsely equates price with
quality.

What you need to do is offer you product in 2 forms - standard & extended.
The standard version would be priced at its current level.  The extended
version would be at 3 times the price (to put it up against its "better"
competitors).  What needs to be extended in the pricier version?  Nothing,
except the price.  Consider the difference to be a "research tax" - If they
can't do proper research, they should pay the tax.... ;-)