I'm really surprised to see how poker players apparently only look at how quickly some investment pays off - it even seems to me like it just doesn't matter whether the price is actually justified or whether or not the seller would be considered trustworthy.
This software looks like a scam at first sight - and after reading this thread, well it's still shady at best. To be honest, I don't even think he has any bad intentions, he's just completely incompetent in terms of business.
The problem is however that we're not talking about peanuts here but some really decent money - and I don't think the benefit of doubt should be granted lightly when facing mid- to high 6-digits.
Recently, the EU Commission passed several lays to protect customers from shady businesses - this software is violating several of them. I'm not too familiar with US trade laws - but this is so extreme that there's a decent chance.
Basically
- You must clearly display the price of the product. Tricking the customer about this in combination with a subscription service could even be considered as fraud in Europe. Not displaying any price at all may even be a problem in the US or other countries. The price must be on the purchase / download page, not in some video of forum thread.
- When selling a subscription service, you must clearly say so. A product which requires payment after some time to continue functioning is considered a subscription service.
- You must clearly state which warranties you give / don't give with your software. 6 months warranty is the minimum is most European countries.
- You must provide contact details on your website. In the EU, this means a full address and phone number, though in poker world nobody would complain if you at least provided an email address.
Not displaying the price on your website means influencing your customers purchase decision - whether it's intentional or not. People may download your software without expecting it to be that expensive, then like it and eventually buy it when they wouldn't have done so if they knew the price. Doing this intentionally is fraud.
From the description of your software, it is also not obvious that you are selling a subscription service. I watched that husng.com video and a simple '/ 6 months' in a "select license" dialog is not enough. Yeah, you may just be completely incompetent - but scammers use the same trick to fool their victims. People simply don't expect that a software has to be re-purchased every 6 months.
Another interesting thing about the poker community is how prices work here.
There simply is no technical need to charge different prices for different buy-in levels, it is simply a way of squeezing the most money possible. A small stakes rebate like PokerTraker does it would be ok - but not charging multiple times the price.
Your business model simply shows that you're trying hard to do the very minimum work and while gaining the highest possible profit.
Minimum Work - as I said before, 6 months is generally the minimum legally required time where you need to provide support - and you kick your customers out right the next day.
Maximum Profit - for two reasons, a) you kick your customers out for no technical reason simply to make them re-purchase (you would have the maintain the product anyways for your new customers) and b) you charge a lot more money than required from "rich" customers, assuming they'll just simply pay.
This is just the most anti-customer-focused software development strategy that I've seen in a very long time.
One also has to thing about bug fixes and downtime here. In simple terms, if Stars changes things once a month and you need a week to fix it, then your product will be broken 25% the time. That's a lot.
Using these numbers, about 100 high-stakes customer would already net you some $10k per month - for a 10-hour/week job.
And which guarantee do we have that you won't double your prices after almost every reg has this tool ?
Since we're talking about some really serious money here, I'm also worried whether we really get the full 6 months of support - for instance, what happens if you sell 1000 licenses then in 2 months Stars changes something that you can't fix - can we trust you to refund everyone ? To even still have that money ? Some $100k+ is a very strong reason to just silently drop from the face of the earth ....
Yes, the price is not too much if you solely look at how fast it will pay off - but if you get away with this, then I'm afraid this will create a significant inflation of marked prices for poker software.
You're basically charging up to $1k/year for very little - if this model has any success, then what's stopping PokerTracker from charging some $10k for their product ?
Jack