His company has 22 retail locations. I have just never sold my software before so I don't know how to price it. I was told something like $5000 would be reasonable but I wanted to know what HN thought.
(It is a desktop application)
$5k might be fair, who knows? $5k total? per store? Does that include future installs?
Are you selling the source code too or just the compiled application?
If you're not selling the source code, are you going to license the software to him based on the number of installations or just give it to him for a specific price? You could sell it on a sliding scale based on the number of installations. If he has 22 locations and 5 installs per store, then have pricing for single installs and discount for a pack of 5 licenses.
You shouldn't give it away cheap just because it "wouldn't be too much trouble". Take into account the impact on business. How much time & money will your software save them? Remember time _is_ money.
Good luck.
He isn't getting the source code, just the executable. I also don't want to have to deal with licensing since that could complicate everything.
I really don't think it will save them much money, just aggravation. That's why I am having trouble pricing it. It is difficult to put a price on aggravation...
If your customer is aggravated because a certain process takes forever to complete, and your product cuts that time in half, allowing the customer to concentrate on other money making parts of their business...then there is definitely a price on aggravation.
If he's going to make a million dollars with it and his only other choice was a $350k corporate license from Oracle, I'd say $300k sounds about right.
I am working on the maximum amount idea... Assuming it takes me a while to test it, it should only take about a week of my evenings to get the changes he wants completed and tested to my liking.
Price accordingly.
How much time, effort, and expense went into developing your skills?
If it's per location, as he expands, so does your business. (And, described well, it can be present as a "win-win" business relationship. You're "invested" in his success. Though I don't mean giving him a break in return for anticipated future volume.)
P.S. I'm talking up front costs. No claw backs of those if/when locations close. Also, would a site license be transferable? That might depend on whether moving it requires your support.
noonespecial mentions support. I'll add liability (and limiting same). Make sure you define the terms.
I saw mention of LDAP or whatever. Sell him what he wants, in a timely fashion, now. Such things, if desired, can be future upgrades -- for a price. Even if you initiate: "You know, I'm continuing to work on the produce. Would you be interested in having this (let me show you how useful it is) feature?"
You may end up giving him breaks, and/or just being a decent business person. Just make sure those actions are on your terms and not coerced. You don't have to be a greedy bastard to want to maintain control over the situation.
Do you have a sense of what they're currently paying/what the competition charges?
