Here's the model I am thinking of right now:
Total cost to buyer = (number of seats) X (partial 3rd party license cost + app development cost + 1 year support & updates).
Number of Seats
My first question is how do I explain to the customer, the rationale for per-seat license fee? Meaning that 5 person using my software will be 5 times more expensive than a single person using my software? Right now, I don't know how to explain this other than that more people using the software will produce more support requests, but this seems disputable.
Partial 3rd party license cost
On another note, I am using 3rd party commercial licenses in my software. I have spent about 2 grand in total. Should this cost be passed on to the end user? I am leaning towards passing it because the 3rd party license itself has an ongoing annual license cost that I need to pay for continued support from that company. In addition, the 3rd party library I do not have access to it's source code so it's technically not my code so I need to spend extra time working with it (ie. fixing library related workarounds).
Another rationale for not passing the incurred development expense to the user would be that if I somehow miraculously have lot of volume, I could cover that expense.
Application Development Cost
So this should include some human capital expended in putting together the complete product. What if it took you 1 year? 2 years (that's me)? Should you price it differently. Basically, how much premium should you add?
1 Year Support & Software Updates
So this is an ongoing bug patches, feature updates and etc. What percentage of the total development + license cost is suitable to add?
Just match your competitors? But what if your product is a different approach to the same problems? Should it still be similar to your competitors license fees? How would you go about finding out there license fees if they don't disclose it on their website?