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Re: AM: Price point marketing

To:     Larry Brown <larryb@digitalnow.com>
Subject:     Re: AM: Price point marketing
From:     Ann Shack <0007322532@mcimail.com>
Date:     Tue, 01 Jul 1997 22:26:03 -0400 (EDT)
Cc:     "'ad-market@netpreneur.org'" <ad-market@netpreneur.org>

-- [ From: Ann Shack * EMC.Ver #2.3 ] --

One idea I have is that you should charge them a license fee for a specific
number of uses. (ie. $600,000 for 100,000 uses.) Can you put a counter in your
software? Do you know how to "lock up" the software after a fixed number of
uses? Rand McNally's TDM software/PC licenses work like this and you can buy
additional routes/uses. A new "key" is given which validates the software for
more usage.

Hope this helps. Good luck.
Ann Shack
President
MapSys Inc.
www.freetrip.com

-------- REPLY, Original message follows --------

Date: Tuesday, 01-Jul-97 03:03 PM

From: Larry Brown              \ Internet:    (larryb@digitalnow.com)
From: Larry Brown              \ Internet:    (larryb@digitalnow.com)
To:   "'ad-market@netpreneur.org'" \ Internet:    (ad-market@netpreneur.org)

Subject: 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  some input.

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
    digital.

Any thoughts, ideas or suggestions?

Larry Brown, CPA Chief Operating Officer Digital Now! larryb@digitalnow.com 703-
902-0600 ext 104

Thanks in advance for your help!


-------- REPLY, End of original message --------


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