Market price 2

Joel Spolsky

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Livingston: If people have to pay more, they take the product more seriously?

Spolsky: Definitely. There was a five-user license that was like $199, and that just feels like shareware, practically. But today, when you say that a ten-user license is $999, it starts to feel like a more substantial product. In that market, it still is actually a good deal. But you really have to have a price point that conveys what you think the product positioning should be. Many people will judge where your product fits in the market based on its price.

— Joel Spolsky, Cofounder, Fog Creek Software

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2010.11.23 Tuesday ACHK