AM: Price point marketing
I have an interesting problem, which I hope I can get some useful
feedback on. I'll try to describe it as briefly as possible. Please
feel free to write, or call, if you need additional information, or have
We make software that is just being released to the general public this
week. It is called "Showcase" and is effectively a family photo
organizer. It puts your digital images in a picture album kind of
display, lets you add notes, and sort it by every way possible. We only
sell to resellers and are going to charge $5.95 per copy, they can then
choose their resell price.
One of our distributors wants to buy an unlimited right to give away our
software to their customers for one year. They develop the film in a
digital manner from regular 35 mm film. They think, correctly, that
giving away our software with a digital order will increase their
digital share of business. How much should we charge for this? It will
be a one time upfront fee.
We don't have a clue so here are some of my thoughts.
1) They will only be giving away our software to their existing
customers. I don't think this takes away to much from any of our other
resellers marketing possibilities.
2) They have 1,000,000 customers. Statistically about 40%, 400,000, of
these have computers. Currently 3% of their customers order digital
film, in addition to regular pictures.
3) Our customer in Finland has 15% of their customers also order
Any thoughts, ideas or suggestions?
Larry Brown, CPA
Chief Operating Officer
703-902-0600 ext 104
Thanks in advance for your help!
- Re: AM: Price point marketing, Albert, Paul