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Startups listen up: you’ve got a pricing problem | Enterprise...

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Saved by 3 people (0 private), first by anonymouse user on 2008-10-07


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on 2008-10-17 by ddddmurphy

Pricing Opportunity Phil Wainewright speculates that Zoho may have developed a model that allows it to take advantage of the freemium approach such that it can outgrow Salesforce.com. In one sense that doesn’t surprise me. The SMB market at which Zoho is aimed is huge and in marked contrast to the upper mid-tier and above that, until recently has been Salesforce’s focus. Its pricing reflects its focus with the professional edition coming in at $65/month/user for basic SFA, call center and 10 custom tabs.

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Just about every new product coming to market is being offered as a service rather than packaged software. But pricing remains something of a mystery. A while back, I started a spreadsheet that plots price points for different saas accounting offerings. At the time I concluded that no-one has figured out a viable model that could be generalized for the whole market. Despite it is far from complete and out of date, I believe the same still holds true.

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