What should the asking price be for the app I made?

PrimeSteak

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Hey guys, so I'm going to sell a program I made to the local dirt oval racing club. But I'm not sure what the price should be? I had an idea that I'd want to ask R3000 for it. Is it too high? Keep in mind, that this is the first program that I ever made at a "professional" scale, I also just recently finished high school. So I don't know if I'm maybe asking too much? If so, what should my asking price be?

Thanks in advance for the advice!

Kind Regards
PrimeSteak
 

johnjm

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Hey guys, so I'm going to sell a program I made to the local dirt oval racing club. But I'm not sure what the price should be? I had an idea that I'd want to ask R3000 for it. Is it too high? Keep in mind, that this is the first program that I ever made at a "professional" scale, I also just recently finished high school. So I don't know if I'm maybe asking too much? If so, what should my asking price be?

Thanks in advance for the advice!

Kind Regards
PrimeSteak

Offer it to them for 300 a month with free support.
 

animal531

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It's a really hard thing to answer as an outsider. Will you only ever sell 1 copy of the program (or are you trying to get it out to other groups/people as well)?

What's the amount of work required on maintenance, etc.?

If it's a once off thing and they really need it then it should be R30k - R300k. If you're trying to branch out then a subscription based plan is good. R300 p/m is an ok price for a home user, but its way too low for a business.
 

HibiscusTunes

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Hey guys, so I'm going to sell a program I made to the local dirt oval racing club. But I'm not sure what the price should be? I had an idea that I'd want to ask R3000 for it. Is it too high? Keep in mind, that this is the first program that I ever made at a "professional" scale, I also just recently finished high school. So I don't know if I'm maybe asking too much? If so, what should my asking price be?

Thanks in advance for the advice!

Kind Regards
PrimeSteak
How long did it take you to make the app?

How much time do you envision spending on support and bug fixes per month?
 

PrimeSteak

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It's a really hard thing to answer as an outsider. Will you only ever sell 1 copy of the program (or are you trying to get it out to other groups/people as well)?

What's the amount of work required on maintenance, etc.?

If it's a once off thing and they really need it then it should be R30k - R300k. If you're trying to branch out then a subscription based plan is good. R300 p/m is an ok price for a home user, but its way too low for a business.

Well, for now, I'm planning to sell it to my local club. But I'm willing to sell to other clubs as well if they want it.

Maintenance wise, not much work is needed. Adding features tho might be a bit of work, it depends really.

Isn't 30k a bit much tho? Cause I don't think they would bite on that one?
 

PrimeSteak

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How long did it take you to make the app?

How much time do you envision spending on support and bug fixes per month?
Well, it took me about a month. About 3- 6 hours a day. I haven't thought of the support and bug fixes stuff a lot yet.
 

PrimeSteak

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I'm not sure, but I think below R10000. Will ask my mom later (she works at the club).
 

Dean

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Look up Tom Hirst on twitter, he speaks a lot about freelancer pricing in the digital space, also written a book... The advice seems very sensible.
 

werfie

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First off... Nice job, having a customer right when you starting out!

Secondly

Isn't 30k a bit much tho? Cause I don't think they would bite on that one?

Not necessarily. Couple of questions you have to answer here:

  1. Did they commission you to do the app?
  2. Would you have some agreement that they can use the app exclusively (you're not allowed to sell it elsewhere), i.e. do you sell them the app or only license them to use the app?
  3. What is the quality of the app? (non offensive question, but you need to measure what you can give them as a "newbie" vs what else they could get for the same price)
  4. What value will it add to their business. If it will add a lot of sales or enhance their operations to such an extend that they are able to make a ton more profit, then R30k or even R300k isn't a lot if it will add R100k value to them a month (as an example).
  5. Will their customers benefit from the app more than the business. In that case, not a bad idea to consider not selling the app to them, but rather selling it through an app store (I am making the assumption that it is a mobile app - if it is not, ignore this point)
  6. Related to the previous point, not a bad idea to license the app and do it on a monthly retainer basis. It starts generating a continuous stream of income for you. Just be sure that specify what is included in the monthly fee (hour wise) and that above that costs extra.
 

HibiscusTunes

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Well, it took me about a month. About 3- 6 hours a day. I haven't thought of the support and bug fixes stuff a lot yet.
And a follow up, when you say sell, do you mean sell them the source code, or do you mean to sell them a license that allows them to use the compiled binary indefinitely?
 

PrimeSteak

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First off... Nice job, having a customer right when you starting out!

Secondly



Not necessarily. Couple of questions you have to answer here:

  1. Did they commission you to do the app?
  2. Would you have some agreement that they can use the app exclusively (you're not allowed to sell it elsewhere), i.e. do you sell them the app or only license them to use the app?
  3. What is the quality of the app? (non offensive question, but you need to measure what you can give them as a "newbie" vs what else they could get for the same price)
  4. What value will it add to their business. If it will add a lot of sales or enhance their operations to such an extend that they are able to make a ton more profit, then R30k or even R300k isn't a lot if it will add R100k value to them a month (as an example).
  5. Will their customers benefit from the app more than the business. In that case, not a bad idea to consider not selling the app to them, but rather selling it through an app store (I am making the assumption that it is a mobile app - if it is not, ignore this point)
  6. Related to the previous point, not a bad idea to license the app and do it on a monthly retainer basis. It starts generating a continuous stream of income for you. Just be sure that specify what is included in the monthly fee (hour wise) and that above that costs extra.
When you mean I sell them the license, do you mean that I could add a EULA to the folder I made (the folder contains all 3 programs from the "suite" I made and some critical files, like icons, databases, etc.) after I sold it to them as the "license"? Also if I were to take the Office 365 approach by essentially making them pay a subscription monthly, how much could I ask for it?
 

GhostSixFour

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When you mean I sell them the license, do you mean that I could add a EULA to the folder I made (the folder contains all 3 programs from the "suite" I made and some critical files, like icons, databases, etc.) after I sold it to them as the "license"? Also if I were to take the Office 365 approach by essentially making them pay a subscription monthly, how much could I ask for it?

Probably start low, get them to see the benefits of using your app, make them dependent on it, and then start raising prices. Unless there is a market to sell to other clients as well, in which case it might make sense to keep them as a flagship client and add them to your "portfolio" of clients.
 

Kodi

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Probably start low, get them to see the benefits of using your app, make them dependent on it, and then start raising prices. Unless there is a market to sell to other clients as well, in which case it might make sense to keep them as a flagship client and add them to your "portfolio" of clients.
The local crack dealer approves this strategy :laugh::laugh:
 

animal531

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Probably start low, get them to see the benefits of using your app, make them dependent on it, and then start raising prices. Unless there is a market to sell to other clients as well, in which case it might make sense to keep them as a flagship client and add them to your "portfolio" of clients.

This doesn't work. Once a business is paying X then they don't want to pay X+Y the next month, and definitely not X+Y+Z the next month.

There's another way to calculate pricing for yourself. You say it took a month of 3-6h per day, so let's say 21 days * 4.5h (rounded up a tiny bit) = 100 hours.

If you sell it for R3000 then it means your time was only worth R30 per hour, which is nothing. Once you work in IT for a company for a bit you might be earning R150 p/h, that means it's worth R15k. If you're a senior etc you might be worth R300p/h, = R30k.
IF that company however is selling your time to another company as a senior or principal dev then they're going to be charging R1000 easily, which = R100k.

So basically, pick the point where you feel it was worth your time. If you just want to sell it then a low price is fine.
 

saor

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First job I'd say charge a once-off and move on, offer to provide support at a certain rate for working on issues or else work it into your cost (up it to R5000 - R10 000). Imo a first job isn't a money-maker, it's a foot in the door and potential referrals down the line.
 
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