What to charge for a program

[Catalina]

Recently I have made a program for a business and apparently the user is happy with it. Part of the deal was too that he owns the source code, so he can do with it what he wants.

Now he lets me know that another, similar business, is interested in getting it as well, with a few minor changes to reflect their needs.

The question I ask myself now is what to charge for the program for the second customer. Obviously the real work is done, may be a few hours to make some changes is all there is to it.

I charged the initial customer $650, what is a fair price for the second customer.

Any thoughts on this?

Thanks

Catalina

 

[spikepl]

How about $650, and 130 (20%) back to the owner of the software for the lead ?

 

[jamesmor]

If I read it right, you're no longer in control of the source or the application, so it'd be up to whomever you sold the software to on negotiation of a price to another customer.

You and your initial customer would work out how much to charge him (initial customer) for the changes that you make.

Otherwise I fear your initial customer could come back and bite you with copyright infringment, because of him owning the source code.

I'd hate for you to do the work and not get paid.

 

[GaryPanic]

I'd go down the route of an introduction commission to your first customer

However I think it would be hard to be sued over copyright infrigment
it would depend on how compilicated the database was/is and also did you lift any code form another persons?
also reading from your email he can do what he wants with it - nowhere do you state that that you cannot - he can sell it without your knowledge - where would you be ?
If he has intro the client to you he's hardly likely to sue you is he?

 

[Catalina]

Thanks for your views.

I am asking my first customer what he expects from a second sale, since he owns his copy. Knowing him as a very reasonable man I don't foresee problems when I sell a revised version to another customer, which is certainly not a competitor.

I'll keep you informed.

Catalina

 

[Catalina]

The first customer just emailed to say that he expects no financial gain, it's just between me and a potential second buyer. He doesn't care about copyrights either, since it is not going to a competitor.

He just sees as a good chance for me to make some extra money and an opportunity for a colleague to use a program that will save time and money.

Catalina

 

[GaryPanic]

excellent -
but I would not sell it to a potential competior of his ...

 

[Beetle]

If you're going to be selling copies of your application you might want to do yourself a favor and write up a small contract that lays out the details of the purchase. Specifically, you should stipulate that although the buyer may be purchasing access to the design/code, this does not mean they have any rights to such, and that you are free to re-sell the application to anyone you choose.

As far as price, it seems to me that if the first copy was worth $650 then the second copy should be worth the same. Just because the development is already done doesn't mean that the time you put into it is worth less simply because you already sold one copy. That is, of course, unless the first buyer agreed to cover the cost of development in exchange for some type of exclusivity, which does not seem to be the case here. It would be different if you were selling a larger number of copies, in which case you would charge less and your development time would be reimbursed based on the volume of sales.

JMO of course.

 

[gemma-the-husky]

and of course, it is somethng to consider for the future.

$650 probably indicates it is not a very complex app, but even so, selling unrestricted copies, without trying to control the copyright increases the chances that your code will find it's way into more places without you getting any recompense.

 

[Catalina]

Thanks for all your views.

I don't do this for a living. If I had a business I certainly would have followed a different route. Now, selling an extra copy is just a nice bonus.

If I get an opportunity to develop a different program, I will probably put a more strict policy in place in case I foresee selling the application to more than one customer. No sense cheating yourself out of some money.

Catalina