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pricing, think long term | Forum

Topic location: Forum home » Support » Oxwall Store
dave Leader
dave Apr 11 '15
I just recently took another stroll through the Oxwall plugin library and one thing struck me again and again.  Price!  


First let me say that i totally understand the effort most of you good developers put into your work.  I understand that time is money, i develop as well.  And not just for Oxwall, i do WHMCS modules as well as my own software.  So i do understand the investment. 


However you have to consider the environment your in when selling your products.  This is not like Prestashop where you can get anywhere from $100-$350 dollars for a plugin or module, it is just not like that here. Prestashop is a totally different mindset and investment all on its own and people have entirely different reasons for having Prestashop than they do any other software.  So with that said, asking huge amounts of money for your projects does not usually work here in the Oxwall environment. 


So your reply is probably "but its worth it", im not arguing that fact, sure it is to you, just as mine are worth alot to me as well.  But you have to consider the consumer here and the demographics of a typical Oxwall site owner.  A typical Oxwall site owner is not going to dish out $99 bucks for a plugin, i say typical because some will of course. 


The fact of the matter is that once your plugin price goes above $25 bucks, sales usually fall off a cliff.  So you have to think long term here.  Don't try to make your investment back in a few sales, stretch it out and think volume sales rather than high dollar quick returns. 


Example:  


So lets say you spent 2 weeks writing a plugin. 

80 hours (40 hours a week) x $15 an hour = $1200


Now figure 100 sales over 1 year to make your money back, most developers have multiple projects going just as i do so just add this one to the mix and you will have a monthly income from all of them put together. 


So in this example we decide that 100 sales over 1 year which we hope would be about 8 sales a month give or take a few. 


So we figure that our price for the plugin should be about $13, at 8 sales a month for 12 months that would be $1248, so you have your investment back now and you have a very affordable price for the Oxwall consumer. 


Thinking long term instead of short term pricing will get you a better yield over the term.  You will have more satisfied clients, more clients volume wise, and you will be able to stay afloat in this difficult market we live in today.  Remember it is a buyers market now, not a sellers market, so price your projects accordingly. 


Hope this helps you with your plugin pricing.  


Dave