Have a look at Mike Cannon-Brookes' great slideshow on how Atlassian
went about scaling up.
Slide 5 is the key re: pricing.
http://www.slideshare.net/mcannonbrookes/scaling-atlassian-march-2008

>From what I understand, their software is............
a) way cheaper (if not also better) than the big enterprise software
vendors at one end of the spectrum, who have to feed their traditional
(human) salesforces, and:
b) way better (more complete, easier for the customer) than the open
source alternatives, and
c) they do a great job of servicing their customers (they say:
"service is sales for us").

So Atlassian are being hugely successful in the middleground between
enterprise vendors and open source.
Which kinda makes a mockery of Bill Gates' adage:
be cheap or be different: all the grief's in the middle.

They understood their customer because the first 3 or so products they
built: they built because they needed them for themselves.
So they were in a position to understand intimately how much value
their products brought to people with similar problems.
You may not have the benefit in your market space of over-priced, over-
featured competitors who you can pick off like Atlassian could.

But maybe this forces you to think:
where IS the real pain for our customers?
Hopefully your current products deal with this pain, whatever form it
takes.
If not, maybe there are juicy problems adjacent to what your products
do today, that you could "take on" and fold into your product set, IF
you know about them.....
and to state the bleeding obvious........you need to be close to your
market to know about them.

Mike said 2 other important things in a Fb post:

1. Learn, don't copy.
2. Look for the simplicity on the other side of complexity (as Mark
Rafter called it).
For you, I'm thinking: explore all the pricing options, and discuss
them and keep discussing them until some elegance and simplicity
emerges on the other side.
I hope you find this in less time than it took me!
Mike also quoted Steve Jobs on this.......and it's a great quote:
"...when you start looking at a problem and it seems really simple
with all these simple solutions, you don't really understand the
complexity of the problem. And your solutions are way too
oversimplified, and they don't work. Then you get into the problem,
and you see it's really complicated. And then you come up with all
these convoluted solutions. That's sort of the middle, and that's
where most people stop, and the solutions tend to work for awhile. But
the really great person will keep on going and find, sort of, the key,
underlying principle of the problem. And come up with a beautiful
elegant solution that works."

Hope this helps.

Andrew Simms.


On Dec 19, 12:57 am, "Nick Holmes a Court" <[email protected]> wrote:
> Hey Silicon Beach
>
> I found this great post which provokes a few thoughts/opinions on the
> discussion of how to price Enterprise/Business web software and SaaS.
>
> How to price software/saas 
> -http://network.businessofsoftware.org/forum/topics/how-to-price-softw...<http://network.businessofsoftware.org/forum/topics/how-to-price-softw...>
>
>
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