Introduction to CodeForTraders Club Pricing

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progster
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Introduction to CodeForTraders Club Pricing

Postby progster » Sun Sep 30, 2007 12:57 pm

How would you like to get high-quality trading code for 20%, 40%, or even 60% off of the normal price?

Welcome to CodeForTraders' Club Pricing Plan - where the club is everyone out there who is willing to purchase the code at the same price that you are!

Please read on to learn the rationale and details behind this innovative approach to trading software pricing.

Economy of Scale

Everyone understands that a producer has to charge more per-item for one, or a few, of something than for many of the same something. This is because creation is front-loaded with the costs of research and development time, while duplication and distribution (once research and development is complete) adds only incrementally to the producer's total cost (in the absence of heavy advertising bills).

The software products on this site are designed, written, and tested over the course of days, weeks, and months. It is possible to express the cost of creating a product in person-weeks and to convert this cost to dollars, based on assuming the professional developer's salary, benefits, overhead, etc. and dividing by 50 (weeks in a year, leaving 2 weeks for vacation).

Let's say that code product X has a cost-to-create (CTC) of $2000. That figure represents breakeven for the developer's time and effort. Of course, there's a chance that X will be a very popular product and if so the developer would like to do better than breakeven. There's also the chance that X will not sell at all. Such are the risks and rewards of independent development.

Now, there is more than one way to make $2k from X:

a) Sell 1 copy to a hedge fund for $2k
b) Sell 5 copies to private traders for $400 each
c) Sell 10 copies to private traders for $200 each
d) Sell a 40 license pack to a prop firm for $50 per seat
etc.

This is all just for illustration, but here's the point: The number of people who even know these products exist is but a tiny fraction of the potential users. If that were to change, the products could be offered at substantially lower prices and still provide fair (or maybe even generous!) return for the level of effort required to create them.

Reaching the Target Market

Let's talk about the TradeStation user base for a moment. According to TS's public reporting, there are over 20,000 TradeStation users.

If only 1% of all TradeStation users were to purchase a product, that would be 200 sales.
Even 1/4 of 1% would be 50 sales.

It seems safe to say that 99% of all TradeStation user's don't even know that CodeForTraders.com exists!

Friends, we've got to change this, and we will all benefit greatly from doing so!

Club Pricing Plan

For all products designated "Club Pricing Available", the following discounts (or similar) will apply:

  • Club of 1: 0% discount
  • Club of 10: 20% discount
  • Club of 20: 40% discount
  • Club of 40: 60% discount
So, for a $250 product, that works out to:

  • Club of 1: $250 per license
  • Club of 10: $200 per license
  • Club of 20: $150 per license
  • Club of 40: $100 per license
That's right, if only 40 people (out of over 20,000) purchase, the price drops from $250 to $100.
We're talking software that was carefully crafted, probably over several weeks, in your hands (legitimately!) for only $100.

Does that sound good to you? Well, does it?!

How It Will Work

Upon a product's release, the Club of 1 is immediately open. Anybody can purchase at this price right-away, directly through the CodeForTraders.com web site.

  • The Club of 10 opens once 10 people have expressed willingness to purchase (and then followed thru) at the 20% discount price.
  • The Club of 20 opens once 20 people have expressed willingness to purchase (and then followed thru) at the 40% discount price.
  • The Club of 40 opens once 40 people have expressed willingness to purchase (and then followed thru) at the 60% discount price.
Once a given club is open, anyone else will be able to purchase at that price (and the 1-copy web site price will be changed to reflect this).

To express your willingness to purchase, just visit a product's Club Pricing page and vote for all the levels up to the maximum price you would be willing to pay for the product. You can view the poll results to see exactly how much interest has been expressed in each club, and you can change your vote(s) at any time to reflect your latest thinking.

Several things are accomplished by this program:

  1. Deep discounts are made available, in proportion to the interest which justifies them.
  2. Those who are willing to pay a little bit more do not have to "wait around" for others to join them.
  3. A very popular product pays off decently for the author.
  4. "Price discovery" occurs. If there is demand for a product, but only at a very low price, that fact eventually becomes known, and folks who want the product will eventually get it at the price that works for them (presuming the Club opens), while the developer still manages to get paid fair compensation.
There are lots of ways that this can play out for a given product, and I think it will be fun to see what happens in different cases.

The best scenario for buyers is simply to generate enough total interest to immediately open the Club of 40.

Which means, in a nutshell, TELL YOUR FRIENDS!

CodeForTraders wants to sell you great code at prices that will astound you. If you help us out by getting the volume up, we'll be able to do exactly that.

What to Do

As a customer:

1) Email your friends, tell them about CodeForTraders.com (and Club Pricing) and get them to join our mailing list.
2) Mention CodeForTraders.com with enthusiasm in public forums (generally permitted, when posts are by you, and not by us)
3) Tell your local user's group, and get members to participate in CodeForTraders' Club Pricing Plan.

As a developer:

Get on the train! Sell your code to those who need it, and earn a decent return for your efforts. Email: jobs@CodeForTraders.com

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progster
Posts: 948
Joined: Thu Jul 26, 2007 7:20 pm
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Re: Introduction to CodeForTraders Club Pricing

Postby progster » Mon Feb 28, 2011 8:19 pm

*** Club Pricing is Officially Discontinued (as of 3/1/2011) ***

Interest in club pricing has been very minimal during the several years since the original posting. Minimal to the point where there is no point in continuing the program, as the lack of participation is overwhelming!

Some experiments yield great finds, and others simply show where there does not seem to be any point in looking further.

Rest assured that CFT remains committed to writing great code and delivering it at a cost that represents a huge bargain to the customer relative to the effort-of-creation.

Thanks to those who have inquired over the lifetime of this program, and Happy Trading to all of you!

- Progster


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