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Pricing: Is $99 the new $19?


#1

It may be my imagination but I think I’m seeing $99/mo. more commonly now than $19/mo. as a baseline in SaaS World.

Has anybody else noticed this? (I like it.)


#2

While QE was in full power, it made sense. Now that QE has stopped, I’d expect it to go back to $19. (Same as oil).


#3

Just so I’m clear, QE is quantitative easing and you think that QE is responsible for 500% growth in SAAS prices?


#4

I don’t think it’s as simple as increasing prices. Back in the day (aka BoS forum) there were a lot more people doing consumer apps and one time payments - Bingo Card Creator, Collectorz, Perfect Table Plan, Poker Copilot. Today there’s a lot more people doing business apps on monthly subscriptions.


#5

Isn’t the fact also that Microsoft, Adobe and all have gone to a subscription model now… so consumers of such services are getting used to pay for the value… There used to be a question with regards to reliability of such services but now nobody thinks twice about making the leap…


#6

It could be perception more than reality. Or maybe not.

I have noticed though that some of the pay-per-month services I’ve been using for years were much cheaper when I started using them. Two examples: GetSatisfaction and Vanilla Forums. They are both several times more expensive than when I started using them.

Perhaps they’ve learnt the wisdom of charging premium prices in their fields. 1,000 customers @ $100/month is a more pleasant business to run than 50,000 customers @ $10/month, even though the gross revenue is much lower.

Luckily in both cases I’m grandfathered on the cheaper, older plan.