So much of pricing is about choosing the right metric. In other words, the dollars per what? Gasoline is priced in dollars per gallon (or per half gallon in some cases where the pumps can’t display prices above $3.999– how much do you think you can charge for the upgrade kit?).

A lot of software pricing debates come down to whether to charge per user, per CPU, per transaction, or per some other metric.

Now here’s a great example of choosing the appropriate metric, courtesy of one of my favorite business gurus, Scott Adams.

Part 1.
Part 2.

Comments are closed.