Rich Loeber wrote on 12/07/2007 11:34:33:
I think there is some logic in the tier based pricing model, although
we
have rarely used this model for our business. The thinking goes
along the
lines that the more capacity the system has, the more users there are
and
the more the software gets used as a result. This plays especially
in the
area of support. On a small system with limited capacity, the
software is
used less, there are fewer users and, consequently, there is a lot
less
support required.
Aha! That makes some sense. It's sort of a short-cut way doing
user-based pricing. It's always seemed to me that support prices based on
number of users makes complete sense, but charging for the software itself
makes very little sense. The only argument I can see is that building
software that scales well for large numbers of users is more difficult. I
also realize that there are other matters involved. Whether or not you can
trust customers to accurately report number of users is one. It also
seems much easier to charge x% of list for support rather than requiring a
specific support contract for each customer.
Then again, who ever said that prices need to make sense?
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