Products

Solutions

Resources

Partners

Community

Blog

About

QA

Ideas Test

New Community Website

Ordinarily, you'd be at the right spot, but we've recently launched a brand new community website... For the community, by the community.

Yay... Take Me to the Community!

Welcome to the DNN Community Forums, your preferred source of online community support for all things related to DNN.
In order to participate you must be a registered DNNizen

HomeHomeOur CommunityOur CommunityGeneral Discuss...General Discuss...Are DNN Modules Underpriced?Are DNN Modules Underpriced?
Previous
 
Next
New Post
1/2/2008 2:21 AM
 

A global market today are not equal to same prices for goods and same price for labor cost. As Ismet pointed out he thinks the price fore modules are too high for the Turkish market. I am sure a lot of other markets thinks the same. Do you like to get those markets you have to do something to reach those markets.

All big software compamies take care of that "problem" with differential pricing for different regions. The same they do for the labor cost. Developement is moved to countries like India, China and eastern europe.

A lot of sites are done today by people in low cost contries for US customers, so for Swedish customers too.

Jan

 
New Post
1/2/2008 8:23 AM
 

Network Operations wrote

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. 

At last count, the number of extensions for the 1.5 platform broke the 1,000 mark, and they have not even released the 'stable' version yet (currently RC4) with more and more being released each day. More so, and correct me if I am wrong, the changes reflect a desire to grab control of the mothership and ensure that it stays consistent with its open source roots without ambiguity and also consistent with their tagline: "Open Source Matters," through much higher (and tougher) standards. In the long run, one could argue, the community is therefore better off.

 

 

 
New Post
1/2/2008 9:19 AM
 

Are DNN modules underpriced?  Yes.  And No.  I don't care if a module for displaying Google adsense is only $10, add a Text/HTML module and paste in the Google code and you're done.  That $10 is a waste.  Would a full-featured content magamanet system be worth $5,000?  To many buyers the answer is yes.  This assumes support, training and a workable intuitive interface for end users existed, versioning and approval systems were in place and that the product accepted Word, Excel, etc. content and automatically converted it to properly formatted HTML or a PDF file that could be served.  A very sophisticated WYSIWYG editor and simple page management functions included.  There really isn't such a thing for DNN, yet, though some come close.  That's why many of the CMS modules are a bit pricey.

How do you price a module?  Ideallly, the same way any product or service ie priced.  Mark up the cost of producing the module by a percentage necessary to generate the profit needed to sustain the producer of the module.  Sure, a producer could be in a mud hut just outside the capital of Elbonia, or they could be in a Silicon Valley high-rise.  Costs will vary for the production, and the Elbonian product should probably be cheaper due to lower production costs.

Few DNN module developers are professional software companies.  As more develop, the pricing will fall in line.  Currently, the higher-end customers are served by integrators who use DNN as part of the solution.  Those are the guys with the pricing designed to earn a decent living.  The mom and pop shops, or in many cases just pop, don't have the ability to provide the support, the customization, the documentation, the error checking, beta testing and release process needed to justify a higher cost.

And to a certain extent, the lack of a comprehensive package of modules to provide a specific vertical market solution makes DNN less desireable than a Community Server setup.  And thus worth less in the market place.

Jeff

PS:  Don't go raising porices on us though, just because you aren't in Elbonia...  :)

 
New Post
1/2/2008 12:24 PM
 

Jeff Cochran wrote

How do you price a module?  Ideallly, the same way any product or service ie priced.  Mark up the cost of producing the module by a percentage necessary to generate the profit needed to sustain the producer of the module.  Sure, a producer could be in a mud hut just outside the capital of Elbonia, or they could be in a Silicon Valley high-rise.  Costs will vary for the production, and the Elbonian product should probably be cheaper due to lower production costs.

You mean you shouldn't take into account competition, market share, market reach?  There are many other factors to consider other than just cost of production. 


Will Morgenweck
VP, Product Management
DotNetNuke Corp.
 
New Post
1/2/2008 1:52 PM
 

Will Morgenweck wrote

You mean you shouldn't take into account competition, market share, market reach?  There are many other factors to consider other than just cost of production. 

Competeition and market share/reach aren't factors in figuring the selling price.  They determine whether you'll get that price or not.  If you can't get that price, you have to lower production costs or markup, and you should be able to justify it.

Companies that price products higher simply because a customer will pay it will always get undercut in price, unless there's a monopoly.  Companies that reduce price to meet competition won't last long if the competition doesn't fold, without profit or working at a loss a company fails.  Software is a commodity that decreases in cost dramatically as quantity increases, it costs basically the same to produce ten copies as ten million copies.  Support is pretty much a percentage of sales, but once a programmer has written the code it's peanuts to replicate and distribute the code.  Support costs also drop quickly on multiple copies sold to the same client.

So the only real restriction on software pricing is whether the consumer finds a value worth the cost.  Windows sells in a near monopoly, but don't think consumers would pay $1,000 a copy.  The value isn't enough at that price to avoid finding an alternative.  And the value is different for each consumer, to me $1,000 is outrageous, to a goat herd in Bhutan it's impossible.  To Bill Gates, it's what gets lost in the couch when he gets up.  Though I bet he'd get a discount...

Jeff

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


These Forums are dedicated to discussion of DNN Platform and Evoq Solutions.

For the benefit of the community and to protect the integrity of the ecosystem, please observe the following posting guidelines:

  1. No Advertising. This includes promotion of commercial and non-commercial products or services which are not directly related to DNN.
  2. No vendor trolling / poaching. If someone posts about a vendor issue, allow the vendor or other customers to respond. Any post that looks like trolling / poaching will be removed.
  3. Discussion or promotion of DNN Platform product releases under a different brand name are strictly prohibited.
  4. No Flaming or Trolling.
  5. No Profanity, Racism, or Prejudice.
  6. Site Moderators have the final word on approving / removing a thread or post or comment.
  7. English language posting only, please.
What is Liquid Content?
Find Out
What is Liquid Content?
Find Out
What is Liquid Content?
Find Out