Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Pricing

[Marty]

I have been approached by a US corporation that is interested in purchasing a php/mysql script that I wrote. I would normally sell a single user license for $59.87, he is wanting to know pricing for installing on the corporate intranet with 200 users. I had never envisioned this type of sell and am wondering what the thoughts of others would be around this type of pricing. What do you think I should charge for such an installation?

Thanks

[etLux]

As *much* as you possibly can, Marty... lol.

[BC]

I agree

Seriously, I suggest you charge for all licenses ($59.87 X 200 = $11,974) and then add on top a 'labour charge' for installing everything (whatever you charge for installing it per hour), then total it up. Makes you quite rich, eh?

Of course, if you're feeling generous you can charge for only 100 licenses, and you'd still make a killing.

[etLux]

Generally, there's a handsome discount on "site licenses" of this kind.

Just a thought, but you might prowl Microsoft and see what kind of discounts they give on site licensing of software, and judge from that.

The installation is another matter. Figure your hours, and charge no less than $75/hour... and if it's a Fortune 500 company with deep pockets, they're really expecting you to charge around $150/hour or more. (I charge some of them $500/hour).

ANY other expense of any kind -- travel, lodging, etc. -- is over and above hourly, of course.

[Marty]

I was thinking something like, $59.87 for the first license plus $10 for each additional license for a total of $2049.87. Then I would offer a support and upgrade package of $5/year per license after the first year for support and upgrades to provide residual income. All custom work and installation would be done at $125/hour. If on site support was needed for installations, I would ask for all travel expenses and $850 per day including travel days. What do you think? It is not a Fortune 500 company but was listed by Fortune as one of top 100 up and coming "small" publically traded businesses.

Thanks guys.

etlux,

I liked your first suggestion. That was my first thought, but I do not want to jeopardize the opportunity to get this kind of exposure.

[etLux]

More seriously, Marty, your general outline above sounds reasonable.

Raise the charge to $12/ per each additional license. Quote the cost of upgrades at $12 /per each /per annum. Quote support entirely separately, and *always* make it an hourly rather than a fixed figure so you don't get hung out to dry when the client causes you all kinds of time-wasting problems (which, I promise you, they will do).

$850 per travel day is reasonable, but low. Charge $1250, plus lodging and transportation costs, if you are including labor in that figure -- because I guarantee you, they'll be absolutely sure to get ten hours a day or more out of you.

[Marty]

etlux,

Thanks for the suggestions. That is just the type of info that I am looking for.

[etLux]

Welcome. I've spent thirty years picking corporate pockets, so I tend to be quite wary of them... lol.