From d5aca678b702d425d306e8856fc36d26969a1d83 Mon Sep 17 00:00:00 2001 From: John Cardinal Date: Tue, 9 Aug 2022 22:28:30 +0000 Subject: [PATCH] --- devdocs/pricing.md | 34 +++++++++++++++++++++++++++++++++- 1 file changed, 33 insertions(+), 1 deletion(-) diff --git a/devdocs/pricing.md b/devdocs/pricing.md index ef5afbfa..659cf610 100644 --- a/devdocs/pricing.md +++ b/devdocs/pricing.md @@ -4,10 +4,42 @@ ## 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