Re: [Skunkworks] skunkworks Digest, Vol 39, Issue 58

I would definitely consider the buyer and their buying muscle, this is to say that you would not sell to a bank the same you would an individual or smaller org. For example a bank will buy their banking software several hundred million shillings but then again at the end of the year declare a few billion in profits which simply means they have already recovered the sw investment..
Even for banks or insurance etc, you can't sell it at a high price that cost them more than doing it manually perpetually. Then there is competitors. If its an industry with no competitor, you can milk them a bit. If its a commodity industry like operating system, you might find even giving it away don't cut it. So the answer is, it depends. Muriithi LetsLets
There is never a maximum to how much you can sell a sw, a minimum maybe.
So factor in what the sw will be used for, by whom and ofcourse the amount of sweat you have put in.
There is also a maintenance fee which is usually a percentage of the total cost mostly charged
Any new requirements are charged separately. This means that you must
state
clearly what the software will achieve and anything that falls out of this scope is treated as a new requirement and therefore charged afresh.
At the end of the day though, its really the buying power of your client that dictates the final figure.
George On May 5, 2013 7:41 PM, "William kibe" <njoroge.kibe@gmail.com> wrote:
Hi yall hope the weekend was great. I was wondering how does one get to do valuation for a software that one has developed and wants to sell?Your assistance will be highly appreciated
Regards Kibe William.
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William Muriithi