Pricing: Is $99 the new $19?

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.)


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).

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

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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.

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…

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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.

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