Random Quote #42 topic: joel-on-software
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Notice the gap? There's no software priced between $1000 and $75,000. I'll tell
you why. The minute you charge more than $1000 you need to get serious
corporate signoffs. You need a line item in their budget. You need purchasing
managers and CEO approval and competitive bids and paperwork. So you need to
send a salesperson out to the customer to do PowerPoint, with his airfare, golf
course memberships, and $19.95 porn movies at the Ritz Carlton. And with all
this, the cost of making one successful sale is going to average about $50,000.
If you're sending salespeople out to customers and charging less than $75,000,
you're losing money.

The joke of it is, big companies protect themselves so well against the risk of
buying something expensive that they actually drive up the cost of the
expensive stuff, from $1000 to $75000, which mostly goes towards the cost of
jumping all the hurdles that they set up to insure that no purchase can
possibly go wrong.

Joel Spolsky
"Camels and Rubber Duckies" (on the Pricing of Software)



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