I like the answers from Gerald so far, but I thought I'd put in my opinion too.

What can be useful (depending on the application) is to set up a bulletin board whereby the customers can do a lot of the spec on the new features themselves - client A says "we'd like this", client B says "and add this bit on" etc... Once the general need is identified (if only single need, charge directly for the bolt on module as Gerald suggests), then input the implications (time, cost) for a module to cover this - in general your customers will be only too willing to discuss this. If they know that there's oly 2 customers wanting it, they know that they're not being ripped off by the high price and if lots of folk want it, they can also see that you're being transparent.

Customers win, the company wins. Only major fly in the ointment is that sometimes board level won't see it like that..."WE CANT TELL OUR CUSTOMERS WHAT WE'RE DOING OR WHERE WOULD IT ALL END?" ;-)



>We have an application that will be sold to businesses. After a year a given amount will have to be paid by the customers so that they always get the newest version. Up to that point no problem.
>
>Here's what I'm wondering about. Some clients are already asking for additions/modifications. How do we manage that?
>
>Do we charge them for what we just added? Because there are possibilities that these improvements will be included in a newer version. But to be fair we don't want to charge that customer for things that could be used by others at probably no cost other than the premium they'll have to pay each year. If we charge them do we offer them free services after a new version is released because they're responsible in part for a better version of our software?
>
>We also have to keep in consideration that some improvements could become major things added to the software. In the end improvements worth more than the annual amount paid by only one client.
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>What should be the fair way to manage this for everybody (us and the clients)?

The questions to ask here was:

Are they willing to wait for the next version of the software to get the modification?
if answer = "no" - charge
Are the modification profit other customers of the software?
if answer = "no" - charge