Product management and pricing: floor wax or dessert topping*?

11 06 2009

I’m going to clarify some terms. 
I promise this relates back to pricing and product management.

Art is not a pejorative term

But some people use the word “art” to denigrate anything that they believe has no intrinsic value or lacks a factual basis.

People fear having their work labeled as “art” because it implies that their work is superficial, unrepeatable, and lacks measurable value.  Basically: un-fundable.

Marketing, product marketing, product management, interaction design, and design in general have all tenaciously emphasized the quantitative aspects of their fields in order to avoid having their fields classified as “art” (and therefore irrational and value-free).

And, if all you have met are flighty, self-important, arbitrarily enigmatic, talent-free, damaged hacks that call themselves “artists”, I’d have to agree with you.

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Human nature and software pricing (#1)

10 06 2009

For over seven years, it was my responsibility to price a complex software product.  I didn’t expect it to be a place to learn about the psychological interplay of rules and human relationships.

Over the next several posts, I will share what I’ve learned empirically.  No, there is no pricing magic wand.  However, if you’ve searched the product management literature and the Internet, you’ll find that very few people have discussed pricing anything more complex than single user software licenses or golf balls.

So let’s begin.

Pricing jujitsu and your evil twin

The customer is not your adversary.  Yes, you are trying to extract money from their wallet.  But your job is to quantify the value of your product so your sales force and customers can come to a long-term, mutually beneficial agreement.

This is why complex software never gets sold for list price.

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