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## Pricing for v8
IDEA: figure out average license cost over all sizes of existing license sales, factor *that* with the 29.4% inflation figure Joyce determined before and make that the average license price??
IDEA: figure out average license cost over all sizes of existing license sales, factor *that* with the 19.4% inflation figure Joyce determined before and make that the average license price??
For active subscribers the average price paid for licenses was 121.25 so with inflation of 19.4 that would be 144.78.
Tech counts by level is single=30 $4,770.00 total sales, 5=85 $11,815.00 total sales, 10=110 $13,090.00 total sales, 15=15 $1650.00 total sales, 20=100 $9,900.00 total sales
(more 10 level techs than any other level and single is kind of lame)
So, if we flat price no volume discount and want the inflation increase, if we stuck with 189 for everyone using the single price that's actually a huge amount for the up to 20 crowd
The real revenue is in the subscription so a lower-ish license cost is where it's at
But what if no one buys a subscription?? Maybe though, lower up front and no mandatory subscription which must drive some people away, means more sales when you have a sellable product like early days of AyaNova
This is all about the initial license purchase, not the subscription which I haven't got to yet. Anyway, we were talking about a flat price per license no matter how many you buy. I still like that idea and was doing some calculations to figure it out. If we went that route then the pricing would make more sense to be calculated on the *average* price per license sold, not on the single user price which would end up being 90% higher for a 20 user site. I used our existing active subscribers as a basis to calculate the average price of each license sold. I totaled the amount we charged for all active licenses then divided by number of techs overall that the represent and came to $121.25 is the average price we charge per license. So with inflation using your calculation of 19.41% that's 144.78 flat rate price per tech.
Except the current v7 license comes with 1 year of support and updates and I'm thinking of 90 days initial support and updates so basically we're taking away 9 months worth of support and updates which is not nothing either, not sure if that needs to be factored in or not?
The "value" of a support and updates subscription in v7 terms is 35% of initial license price so using the average that's $42.43 a year per tech or $3.40 / month per tech.
So of that 121.25 we are saying that the tech / license portion is 78.82 and the support and updates portion is 42.43
Alternative method of calculating average license price is to not use sold counts but actually just listed prices on the pricing page so:
1=159.00 = 159 per user
5=695.00=139 per user
10=1190=119 per user
15=1650=110 per user
20=1980 =99 per user
Average here = 125.00 per user so not much difference
This means that the average v7 subscription charge per year is 43.75 (125 * .35)
Which means that the average v7 true initial license charge is actually $81.25
And this also means that in v7 the subscription is worth $3.65 (avg) per month (43.75 / 12)
So in v7 prices this also means that the subscription is worth $3.65 (avg) per month (43.75 / 12) so if v7 was using our new system it would mean
we would charge $81.25 for a license plus $10.95 for the initial 90 days support for a total of $92.20, then if they purchase a sub it would (in v7 prices) be 43.75 for 12 months.
Meaning if use 19.4% inflation figure v8 would be $110.00 for the license and $52.20 per license for a years sub and updates.
ACTUAL INFLATION just looked it up is 24% between now and 2016 including the prior months of huge increases, let's just round that up to 25% because inflation is still on the up trend so:
Taking the average v7 license plus 90 days v7 average sub cost is $92.20 + 25% = $115.25 1 tech + 90 days support in 2022 prices and yearly afterwards is $54.60 average per tech subscription (not factored tiers in yet)
Overall I'm thinking inflation alone works for us and not offering a discount for multiple
### Self installed