We have a portfolio of software products that address the statutory reporting for service tax, excise, e-TDS, VAT, EOU, SEZ, etc. We have more than 10,000 users of our products, and a set of 26 partners. But the market for such products is so huge that we have not even covered one percent of the total market. How we can price and market the product so as to expand our market reach?
Arun Dixit, Udyog Software India, Mumbai
GURURAJ — Let me answer the pricing question first. Usually, pricing of a product is decided on the following factors—prevailing price of competing products, profits you want to earn, and your growth plans. There is no ideal pricing unless you find out how much buyers willing to pay for your kind of software. Take Tally as an example, study their pricing strategy, and arrive at the right price.
From the market coverage perspective, it may make sense for you to tie up with 3-4 auditors and tax consultants in each state who could promote your products to their clients. From a channel point of view, I think your product has a wide market. Every business establishment, small or big, will require your product(s), so expand your channel to have at least one partner in each district, if not in every city.
From the marketing point of view, there are plenty of Web sites on matters related to finance and taxation. Promote your products on relevant web sites through ads or trial downloads. You can also set up your own web site where you can make available trial versions of your software. Anyone, who downloads the trial version, becomes a prospect. You could also participate in forums and conferences on matters related to taxation. Finally, use your existing customers to help spread positive word-of-mouth among their peers and associates.
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