The value of the product is worth what the customer will pay for it, plus the support that customer will require.
Back when I sold "solutions" i'd charge £20,000 (~$45,000) for my basic solution which comprised of a computer that cost me about £1,000 and off the shelf software (albiet with development overhead) that cost me next to nothing. It was the support and specialist expertise in their industry that they where buying. That and the fact I had no competition in those days... :)
I previously sold something I had formerly released as freeware for £10,000 because the customer wanted a [very easy to implement] customisation and where willing to pay for it.
Business operates using very different financial scales to us humble employee's. If a business is turning over £5m per year, and your software improves their operating efficienty by 10%, it has a direct tangeable benefit of £500k per year, on my pricing that'd make it worth £250k + support contract. No MD would sniff at saving quarter of a million quid in 1 year, even if the program only took me 2 days to write...
Back when I sold "solutions" i'd charge £20,000 (~$45,000) for my basic solution which comprised of a computer that cost me about £1,000 and off the shelf software (albiet with development overhead) that cost me next to nothing. It was the support and specialist expertise in their industry that they where buying. That and the fact I had no competition in those days... :)
I previously sold something I had formerly released as freeware for £10,000 because the customer wanted a [very easy to implement] customisation and where willing to pay for it.
Business operates using very different financial scales to us humble employee's. If a business is turning over £5m per year, and your software improves their operating efficienty by 10%, it has a direct tangeable benefit of £500k per year, on my pricing that'd make it worth £250k + support contract. No MD would sniff at saving quarter of a million quid in 1 year, even if the program only took me 2 days to write...