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The third consideration in pricing your product is . . . the competition. The software business is the original home of the better mousetrap. All developers have a truly unique product. A technological breakthrough. A new, exciting, innovative, never-before-thought-of solution to a widespread problem. To hear them tell it. At worst, even if you believe that there is someone out there purporting to solve the same problem, you know your product is better it actually does the job the others only pretend to do, right And that s good. You have to believe in yourself and your product. You have to believe that you re onto something that you have something of real value to offer. Now it s possible that you have created the equivalent of VisiCalc, which Wikipedia describes as the first spreadsheet program available for personal computers. It is considered to be the application that turned the microcomputer from a hobby for computer enthusiasts into a serious business tool. VisiCalc sold over 700,000 copies in six years.

I sat down one night and finally put in all the commands in the Basic to draw color, and I started typing away in Basic and, within half an hour, I not only had my Pong game working, but I had done about 50 or so variations of colors and speeds and sizes and where the score was and all that stuff I had changed so many things around and put in little features that would just take forever to do in hardware Little words pop up on the screen when things happen I called Steve over and I was just shaking, I was quivering, and I showed him the game running, and I said, This game was so easy to write! Look at this, go ahead change the color of the bricks.

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This would have taken me a lifetime to do in hardware and I did it in half an hour And that was true It would have taken an entire lifetime for any engineer with a soldering iron to try all those variations So I said to him, Now that games are software, it s going to be a different world for games And the Apple II, so many people just started trying to figure out how can you get rocket ships to launch, how can you get things that sound like sound when you have a real cruddy voltage to a speaker How do you listen to somebody talk and figure out what they said They started using the Apple II It was just open to all these things We made it easy for anyone to do what they wanted to do.

And I think that was one of the biggest keys to its success We didn t make it a hidden machine that we own we sell it, it does this, you got it like Commodore and RadioShack did We put out manuals that had just hundreds of pages of listings of code, descriptions of circuits, examples of boards that you would plug in so that.

But it ain t likely Chances are, you re not alone out there that there are products already available which do, to one degree or another, exactly what yours does In fact, those folks are way ahead of you in this horse race You re starting in last place Of course, if you did a little research on the competition during the design phase, you ve got all their good ideas built into your product, you ve eliminated all their bad ideas, and you ve added all the great missing features So you might really have a better mousetrap But the competition still has something real important that you don t a track record History References Who hasn t been burned by software And once burned, twice cautious So, put yourself on the other side of the table.

anyone could look at this and say, Now I know how I would do my own. They could type in the programs on their own Apple II and then see that s how that works instantly, and know how to write their own programs. Running cards was the most important thing. All these companies started up making cards that you could plug into your Apple II and write a little software (mostly games at first) on cassette tapes. You d go to the store and they d just have all this stuff that you could buy to enhance the Apple II. So one of our big keys to success was that we were very open. There s a big world out there for other people to come and join us. In the years 1980 to 83, when the Apple II was the largest-selling computer in the world, we didn t advertise it once. Everybody else who was making products for it was advertising for it. All of our ads were for the Apple III, which never sold in that time frame. Because we were trying to make the Apple III the big business machine instead of IBM.

Livingston: That didn t happen, right Wozniak: That didn t happen. I think it was a total fallacy. I think we should

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