This is a speedy follow-up post to last week’s featured item, The Creative Sweet.
Coming later this week: how to find your life’s calling. Stay tuned!

Sweet Tips For Cheap Software

Software can be pricey.

Last week I announced The Creative Sweet, a compilation of free and cheap software to help you save money and avoid the temptation to put on your eye patch, hoist the sails and head out to the dangerous waters of pirated apps.

But what happens when you can’t find a cheap alternative? What happens when you’re forced to use a mainstream app that you can’t afford? What if you’ve left your eye patch in your other trousers?

This article will help to explain why expensive software becomes popular, 7 ways to avoid paying full price for it, and some questions to ask yourself before you go out and drop your cash on those shiny new apps.

Why is software so expensive?

Firstly, we need to extinguish this myth that all software is expensive. Let’s hear the truth about software prices:

The majority of software is very affordable.

Yes, I know there are specialist fields where software will eat away at your budget like a hotel heiress with a penchant for poodle accessories. If you work for yourself as a special effects artist, my sympathies are with you. It would be cheaper for you to have twins. If you’ve already got some, you’re doubly brave.

But the simple fact is, for most of us, software is cheaper than it’s ever been. There are many readily-available apps that don’t cost the Earth. Check out the Creative Sweet or search for yourself at VersionTracker or MacUpdate.

So what about the more expensive mainstream stuff?

The Problem With Being Big

The main side-effect of being the size of massive software corporations like Microsoft and Adobe is that your overheads are frightening. It’s a fact of life: big companies have big bills to pay.

At the end of November 2007, Adobe had 6,794 employees spread across the globe (source). In 5 years, its staff have roughly doubled in number. Although that’s not their only expenditure, it’s certainly a good way to measure company size and likely outgoings.

Who pays to super-size already large businesses? It’s you and me!

So what’s the trouble with being big? Well, it certainly has its advantages. But it also carries big problems. A big company runs the risk of pricing itself out of the small business market. If your overheads are high and your core business is software, then guess what? Your software prices need to be high too.

Why am I telling you this and what can you, as a small business or freelancer, do about it? There are at least 7 things I can think of. Read on!

7 Sweet Ways to Save on Software

1) Buy your software from smaller companies. Small software companies have smaller overheads. Their software is normally cheaper. If you can source your software from quality independent small businesses, you’ll probably have a bunch of spare change to spend on the more important things in life. Like your Mum.

2) Shun the mainstream. When software becomes an industry standard, big companies can usually charge what they like for it. The other big businesses who can afford big software prices will keep paying out happily, without realising that it has a knock-on effect to small folks like you and me. One of the best ways to start combating the monopoly effect is to shun the mainstream.

If it was more acceptable to use whatever software you liked, it would create a much more competitive market for the big guys. So don’t be afraid to use software that isn’t mainstream and universally accepted. I recently downloaded the demo of Swift Publisher for the Mac to lay out the first PTO book that’s on the way. The software’s excellent, and I’ll certainly be purchasing it instead of wasting extra money on InDesign or Quark.

3) Outsource the small jobs. If you’re buying software to complete a small job or for occasional use, consider outsourcing the work to someone else instead. It’s much easier to pass on the cost of a freelancer’s time to your client a few times a year than it is to cough up for a four-figure software licence!

4) Use web software. The web is changing the software industry. It doesn’t matter if you’re big or small – if you write software for the web, you can still produce great quality apps that don’t cut out the small guys.

While web software companies still have to recoup the costs of development, normally through subscription charges or advertising, it’s still worth checking out free or cheap web software as a viable alternative to big-name desktop apps. I’ve found that I reach for Picnik more often than my desktop software on many occasions.

5) Buy older versions. You know those features the big software companies add every year? Do you honestly need them? Sure, the idea of flipping pancakes from the comfort of your PC (or whatever they’re promising this year) sounds appealing, but is it worth all that money? Probably not.

Buying older software versions can be a really great way to save cash. You can pick them up second-hand on eBay (make sure they’re still sealed and complete with serials) or make an offer on the more dusty boxes sitting on the shelves of your local computer store.

Don’t forget to keep your ear to the ground for special offers directly from manufacturer’s sites too. In the comments on my Creative Sweet post, Joanna kindly noted that Apple are now giving away iMovie HD6 to those who’ve got iLife ‘08. If you need to install software on multiple machines, offers like this can really help save you money.

6) Become a student again. I’m guessing that many of you already use this one. I include it in this list reluctantly – the reason is this: if you’re using education software in your business, and you’re not in the education business, you’re probably breaking the law.

Most software licences for the education market have a proviso stating that the app can’t be used to make money. But if all you’re doing is learning the app, you could enrol in a part-time course at your local college or university and qualify for an education discount. Don’t take the piss here, though. If you’re making cash from it, do the decent thing and cough up for a full licence.

7) Write it yourself. This isn’t for everyone, but thousands of companies every year – big and small – use in-house software that they’ve developed themselves. I’ve been responsible for developing in-house job trackers that have saved my employers a lot of money compared to splurging on established apps. Sometimes it makes sense to build apps yourself or find a friend who can.

4 Questions to Ask Before Splurging on Software

1) Will I really use it? How many times in the next month do you see yourself actually firing up the software, and spending some time using it to make something that will help you make money or reach your goals?

2) Is there a cheaper option? Check lists of free software to make absolutely sure that there’s not an inexpensive alternative to the mainstream app you’re considering.

3) Could I outsource it instead? Get an estimate from a freelancer on somewhere like the Freelance Switch Job Board. It’s free to post a job request. Once the offers start coming in, you can weigh up the benefits of outsourcing the work versus buying pricey software and doing it yourself.

4) Can I write-off the software costs over the next year? Simply put: will your software pay for itself? Can you use it to make you more money than it cost you in the first place? If you can’t, think twice about buying it and find a cheaper way.

Share your own money saving tips and advice for sourcing software below!

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