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HomeHomeOur CommunityOur CommunityGeneral Discuss...General Discuss...Are DNN Modules Underpriced?Are DNN Modules Underpriced?
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12/31/2007 8:21 PM
 

Ismet Dumlupinar wrote

The point is pricing should be region based, i mean many country people can't pay the price that one US citizen for one module.

Ok, that's an interesting point that I ashamedly have to admit I wasn't even considering. Though, I wonder how much those kinds of differences will matter in the coming years. I work in the CAD/CAE software world and can say that there have certainly been regional pricing disparities for these kinds of products. CAD tools in Europe and Japan have historically been double the US price... but I'm sure there are other things like regional taxes etc that I happily don't have to think about.

On the other hand, there are plenty of web consultants with developers based in Eastern Europe and India doing very real business with US & Western EU customers.

This might be an interesting new discussion thread for you to start as I think it has a life of its own.

-Jeff

 
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1/1/2008 1:19 PM
 

I really don't think regional pricing is realistic given current constraints in the DNN eco-system.  The price of a product is generally based on the cost to produce and support the product, plus some reasonable margin of profit to allow for ongoing development.  The costs to create and support a product do not go down just because the buyer may live in a region with a different economy.  Also, there currently do not exist any means of  targeting customers in different regions.  It is not supported out of the box in any of the eCommerce solutions that I am aware of and it would also be a nightmare to manage from a licensing perspective.

I believe that there will always be room in any market for products which target different segments of the market.  As Jeff said in his original blog post, there are many larger companies who will immediately discount a product if it is significantly underpriced compared with the competition.  So if my goal were to sell to larger companies, then I would price my product accordingly, knowing that I will probably loose many potential customers who cannot afford that price.  Conversely, another vendor may feel that there are sufficient customers at the lower price point to make up in volume what they loose in price.  The bottom line is that both of these markets should be served, and that to date, the upper end market has been underrepresented in the DotNetNuke eco-system.  If we as a platform wish to be taken seriously in the enterprise market, then we have to start offering products that target this market in both the feature set, product support and pricing model. 


Joe Brinkman
DNN Corp.
 
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1/1/2008 4:46 PM
 

Terp, would you share what module club you've subscribed to?  I'm looking for various modules for a financial portal I'm building.  Thanks.

 
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1/1/2008 10:25 PM
 

Ismet Dumlupinar wrote

The point is pricing should be region based, i mean many country people can't pay the price that one US citizen for one module.

Hmnm - so should module developers in the country in question charge less for their modules too? What if they are developing a site for a US customer? Must they charge them a less for the same product as someone who lives/develops in the US? I don't think this is viable in a global market.

On the thread topic - "you pay peanuts, you get kicked out the shop". If your modules are worth it then people will pay for them. At the end of the day a customer can work out how much it would cost them to develop the module (themselves or outsourced) and if this cost (with time/testing etc.) is less than the module cost then it may make sense to pay for the module. Simlified of course, but a lot of end customers really have no clue how much time and effort goes into a complex DNN module.


Entrepreneur

PokerDIY Tournament Manager - PokerDIY Tournament Manager<
PokerDIY Game Finder - Mobile Apps powered by DNN
PokerDIY - Connecting Poker Players

 
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1/2/2008 12:14 AM
 

Any business with over 100 nodes has no issue for paying for software and complying with licensing requirements for quality products that serve their  business.  Much trickier analysis for individual consumers, home based businesses, start-ups etc..  Brand recognition and good will is an intangible that plays into the pricing scheme.  Dotnetnuke Corporation recognizes these differences and provides advantageous licensing terms for everyone.  If you desire more than the "its free - don't sue us -  enjoy. but use at your own risk" you can contract and pay $$$ for a privileged relationship.  This seems very fair and proper. 

Two Options:  Open Source - Free Software (No liability or promise of support, or application use) or Commercial for Customers who are using the software for business and willing to pay substantial money for support, documentation and a business relationship.

The Joomla camp, for example, are having issues with new licensing terms and restrictions imposed on developers for their version 1.5 platform (Forcing specific license terms).  As such many reputable commercial publishers are not releasing products or support for this new platform.  Many of the larger businesses, under the advice of their legal departments or company policies can not use software with this type of licensing.  

The shrink wrap software industry has been faced with these same pricing issues for years and are a good model to study.  A pretty simple and effective model with great marketing exposure building good will and community support is the Free for non commercial use (good place to work the kinks out - donations of $ and time - ad supported etc) and commercial license for business use.     Our experience has been free use to $100 for individuals for non commercial use and $100 - $1,000  for commercial licensing schemes.

 
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HomeHomeOur CommunityOur CommunityGeneral Discuss...General Discuss...Are DNN Modules Underpriced?Are DNN Modules Underpriced?


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