Top 10 Tips When Launching Magento 2.0 Extensions: Think Carefully About Pricing
May 4, 2016
Tip #8: Think Carefully About Pricing
It is difficult to find the right balance between what it costs to produce and maintain an extension and how much a merchant is willing to pay for it. Evaluate the competitive landscape and customer demand in order to come up with the appropriate pricing model.
Some additional tips from our valued developers:
“Pricing your Magento 2.0 extension is an important exercise that could have a big impact on its adoption, perception & more. Most developers are familiar with models that are akin to the app stores (Apple, Google, Microsoft etc.), with free apps, paid apps, in-app purchases etc. As with any product on the market, think about the customer - the retail merchant -- and the value your extension will provide to them. If beta tests or data has shown you a certain Return on Investment (ROI) or benefit that you can produce for the merchant, price such that you can provide at least a 2x-3x ROI within 12 months. Having a scalable pricing model that delivers significant ROI and business outcomes is key to helping both developers & merchants realize value for extensions that power innovation, efficiency & revenue growth.” – Windsor Circle
Come back next week for more tips on launching Magento 2.0 Extensions!