How to price your edutainment software?

Hi there!

Are you a developer?! A sales man, or are you inside the business world?
Well, this article is pointed up to you guys.

How to price you edutainment software?
What do you have to take into account to determine the price of your software?

Some key points that will help you answer this questions:

  • Study your meta-clients:
    • What added-value are you giving to your customers?
    • What specific need are you convering for them?
    • Can the added-value of your product be quantified in future savings for the customer? Explain how.
    • All this points will help you to construct the main arguments of why your target clients should buy your product.
  • Study your market:
    • Who are your rivals?
    • What is the direct competition, and who are the indirect players?
    • What services are they providing and at what cost?
    • Read the user-comments and study your rivals’ strengths and weaknesses.
    • Make their weaknesses your strengths.
    • Stress firmly what does you product have that others don’t and position yourself firmly on the market.
    • Remember you are new in the market, and if your opponents are well established you should place a lower price when entering the market so that customers get to know you.
    • Study your rivals oportunities and threats. Use their threats and make them your opportunities.
  • Study your productcappuccino.jpg
    • Make an interior audit: analyse your products weakness and strengths. Be real and objective.
    • Sometimes you can turn your weakness into strengths. For example there is really known company that made it’s motto and marketing strategy “We are second in the market. That’s why we put more effort into our products and our products become better than the number one”.
    • Study how to maintain your strengths and what barriers can you put to avoid competitors from turning them down. Legal barriers (patents, licenses, intellectual protection) , technological barriers, etc. How many years, or months, will you be able to keep your product on head without realising new versions or add-ons?
    • Make an exterior audit: analyse your products opportunities and threats. Be objective once again.
  • Customer relationship:
    • Listen, respect, and analyse your clients ‘ feedback.
    • Customer relation shouldn’t mean more work. Clients are doing a favor to you in buying your products, you should thank them and listen to their complaints.
    • Your clients are your business, and without them you don’t exist. Take care of them.
    • It’s easier and cheaper to maintain old clients than to acquire new ones.
    • If your clients don’t buy you again, over a period of time, check the quality of your products and analyse if they are dissastified. If that’s the case, then you should re-analyze your design of your product and add more added-value to the customers.

After analyzing all these keypoints you will be able to have a more defined products and a systemic approach of what’s happening to your product, and your market, in order to define a well established marketing and sales plan to push up your product.

I hope this has been useful. You are most welcome to ask your questions and ask about particular cases. I will answer you as soon as possible.

I’ll leave you with a real world example of Patrick McKenzie an edutainment software developer.
I’ll share with you intresting parts of discussion of his case:

My program has a couple of markets but the big one, at least to my mind, is K-8 education. It automates a task that a teacher will probably want to perform on the order of once every two to three months per class. This task results directly in a fun classroom activity which takes a class period — the task, on the other hand, is boring as dirt and requires a lot of manual labor if you do it the old fashioned way. With my program, you cut down the time it takes from ~45 minutes per class to ~5 minutes, once.


I’m currently thinking of three price points: $15, $20, and $25. A couple hours on the Internet show that my competition is one service that charges $36 per year, one shareware program of negligible reach for $20 which is too buggy to be usable, one shareware program of unknown reach (can’t Google it for the obvious search terms but I found it on for $15, and two pieces of professional software which sell for $60+ and/or site licenses (they do other stuff as well). You can get a close substitute for this outside of software from a number of specialist publishers but it costs in excess of $10 per class.

I’m using eSellerate for payment processing, so I will make between 85% and 90% of the purchase price regardless of which price point I go with. My marketing costs are likewise constant per click.

So, anyone have any advice on how I can go picking from those three numbers?

Patrick McKenzie Send private email

Sunday, June 25, 2006

Deleting… Approving…



Deleting… Approving…


Have you talked to any prospective customers (“your market”) ?

Have you done any “keyword mining” to see what those customers would search on? (This can be tricky to do. Sometimes they don’t even know, or you have to talk to a LOT of them to start seeing a pattern).

If you find good representative keywords, I’d base “competitor visibility” on how they come up for those search terms.

It sounds like you can just ignore the prices for the shareware options. I’d ignore prices for anything that your prospective customers haven’t heard of.

Do you think it’s likely that your customers have heard about the other options?
What do they think of these other options?

How many hours do you think you save them over the life of the software?
I’d price that at something like $3/hour saved. (They are probably spending thier own money and may not value thier time).

Also, you might consider an intitial low price and perhaps a lease option as this could get you market share faster. Then, as you build market share and improve the product, you can raise the price.

Introducing a new product into market isn’t an easy move. Even harder, if your company is new.
However, with a lot of work and investigation, it’s possible, and sometimes it can provide incredible results.

I hope you enjoyed the article.
Please write us comments if you would like to read more article related to developing your own software edutainment business.






Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: