{"id":4299,"date":"2015-03-10T00:21:08","date_gmt":"2015-03-10T00:21:08","guid":{"rendered":"http:\/\/learningaloud.com\/blog\/?p=4299"},"modified":"2015-03-10T01:55:21","modified_gmt":"2015-03-10T01:55:21","slug":"price-point","status":"publish","type":"post","link":"https:\/\/learningaloud.com\/blog\/2015\/03\/10\/price-point\/","title":{"rendered":"Price Point"},"content":{"rendered":"<p>I have wanted to write a post for some time complaining both about user expectations for free or very low priced apps\/services and provider pricing models. I see these two issues as inter-related so please bear with my effort to argue for a connection between these issues.<\/p>\n<p>The immediate stimulus for this post was a recent <a href=\"http:\/\/www.mguhlin.org\/2015\/03\/goodbye-postachio.html\">Miguel Guhlin comment<\/a> lamenting the loss of <a href=\"http:\/\/postach.io\/site\">Pastoch.io <\/a>as a free way to offer a web site based in Evernote. Postachio discontinued the free service and moved to a paid service that would cost Guhlin $90 annually in addition to the cost of a Pro Evernote account.<\/p>\n<p>I have written about a similar\u00a0problem on several occasions (<a href=\"http:\/\/www.learningaloud.com\/blurts\/2015\/02\/17\/disappearing-apps\/\">recently concerning Posts<\/a>).<\/p>\n<p>The challenge here is to encourage both users and providers to make adjustments<\/p>\n<p>Users expect too much without appreciating the demands of creating quality resources.\u00a0Users expect free without giving thought to why the app\/service provider would have developed the necessary skills and made the considerable effort to make the app\/service available. This \u201creason\u201d might be called the business plan.\u00a0If no business plan is visible as a user I would hesitate to invest much in the service.<\/p>\n<p>Free does not have to mean that no plan exists, but it is important to consider what the future might hold.\u00a0Perhaps the developers hope to produce a popular service and be acquired. If successful, there is then the concern that the company acquiring the product may discontinue what the user has come to depend on (.e.g., <a href=\"http:\/\/en.wikipedia.org\/wiki\/Lala_%28website%29\">LaLa<\/a>). Perhaps the developers benefit from a related income stream and do not need to make money on the free service (e.g., many Google services, ed presenters who support themselves through speaking\/consulting fees, but offer online tutorials at no cost). Perhaps the developers intend to charge at a later point (the Guhlin experience). If this happens without an indication free\u00a0was not the long term intent I would regard this as naive or unethical (I do not have the background to evaluate the Guhlin case). I do think developers can be naive. I even distrust products that would seem to have \u201cbackend costs\u201d and are free or are sold at a very low price. Once the market for a free or $1 product is saturated, how will the developers continue to cover their own costs? This final issue is the one that keeps biting me. Even services I have paid for have failed on me.<\/p>\n<p>My second \u201cissue\u201d concerns the pricing model some companies offer. My needs frequently seem to fall between the base price (sometimes free and sometimes a few dollars) and the next step up on the price\/services model. As an example, Guhlin suggested that he was going to respond to his plight be using <a href=\"https:\/\/zapier.com\/\">Zapier<\/a> &#8211; a flexible system for integrating applications\/services (as a simple example detecting a change in one service and updating data in a second service). This service interested me so I investigated the service. While quite powerful, the service makes a good example of the situation I have just described. There is a free version that allows a limited number of tasks\/actions to be taken (probably sufficient for Guhlin\u2019s project and most I would consider). The next step on the pricing structure is $240 per year (and it moves up from here).<\/p>\n<p>My sweet spot as a personal user is likely in the &lt;$25 range for annual services and maybe $10 for an app. In some cases I might expect to pay both (the initial purchase and then an on-going payment to support backend requirements).<\/p>\n<p>From my perspectives, these two issues are inter-related. More users should be involved in paying for services they use and providers should be offer reasonable rates suited to the actual levels of benefits users receive.<\/p>\n<p>&nbsp;<\/p>\n<div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_4299\" class=\"pvc_stats all  \" data-element-id=\"4299\" style=\"\"><i class=\"pvc-stats-icon medium\" aria-hidden=\"true\"><svg aria-hidden=\"true\" focusable=\"false\" data-prefix=\"far\" data-icon=\"chart-bar\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\" class=\"svg-inline--fa fa-chart-bar fa-w-16 fa-2x\"><path fill=\"currentColor\" d=\"M396.8 352h22.4c6.4 0 12.8-6.4 12.8-12.8V108.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v230.4c0 6.4 6.4 12.8 12.8 12.8zm-192 0h22.4c6.4 0 12.8-6.4 12.8-12.8V140.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v198.4c0 6.4 6.4 12.8 12.8 12.8zm96 0h22.4c6.4 0 12.8-6.4 12.8-12.8V204.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v134.4c0 6.4 6.4 12.8 12.8 12.8zM496 400H48V80c0-8.84-7.16-16-16-16H16C7.16 64 0 71.16 0 80v336c0 17.67 14.33 32 32 32h464c8.84 0 16-7.16 16-16v-16c0-8.84-7.16-16-16-16zm-387.2-48h22.4c6.4 0 12.8-6.4 12.8-12.8v-70.4c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v70.4c0 6.4 6.4 12.8 12.8 12.8z\" class=\"\"><\/path><\/svg><\/i> <img loading=\"lazy\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/learningaloud.com\/blog\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" border=0 \/><\/p>\n<div class=\"pvc_clear\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>I have wanted to write a post for some time complaining both about user expectations for free or very low priced apps\/services and provider pricing models. I see these two issues as inter-related so please bear with my effort to argue for a connection between these issues. The immediate stimulus for this post was a &hellip; <a href=\"https:\/\/learningaloud.com\/blog\/2015\/03\/10\/price-point\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Price Point<\/span><\/a><\/p>\n<div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_4299\" class=\"pvc_stats all  \" data-element-id=\"4299\" style=\"\"><i class=\"pvc-stats-icon medium\" aria-hidden=\"true\"><svg aria-hidden=\"true\" focusable=\"false\" data-prefix=\"far\" data-icon=\"chart-bar\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\" class=\"svg-inline--fa fa-chart-bar fa-w-16 fa-2x\"><path fill=\"currentColor\" d=\"M396.8 352h22.4c6.4 0 12.8-6.4 12.8-12.8V108.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v230.4c0 6.4 6.4 12.8 12.8 12.8zm-192 0h22.4c6.4 0 12.8-6.4 12.8-12.8V140.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v198.4c0 6.4 6.4 12.8 12.8 12.8zm96 0h22.4c6.4 0 12.8-6.4 12.8-12.8V204.8c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v134.4c0 6.4 6.4 12.8 12.8 12.8zM496 400H48V80c0-8.84-7.16-16-16-16H16C7.16 64 0 71.16 0 80v336c0 17.67 14.33 32 32 32h464c8.84 0 16-7.16 16-16v-16c0-8.84-7.16-16-16-16zm-387.2-48h22.4c6.4 0 12.8-6.4 12.8-12.8v-70.4c0-6.4-6.4-12.8-12.8-12.8h-22.4c-6.4 0-12.8 6.4-12.8 12.8v70.4c0 6.4 6.4 12.8 12.8 12.8z\" class=\"\"><\/path><\/svg><\/i> <img loading=\"lazy\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/learningaloud.com\/blog\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif\" border=0 \/><\/p>\n<div class=\"pvc_clear\"><\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-4299","post","type-post","status-publish","format-standard","hentry","category-general"],"a3_pvc":{"activated":true,"total_views":31,"today_views":0},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1zo8Q-17l","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/posts\/4299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/comments?post=4299"}],"version-history":[{"count":7,"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/posts\/4299\/revisions"}],"predecessor-version":[{"id":4306,"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/posts\/4299\/revisions\/4306"}],"wp:attachment":[{"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/media?parent=4299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/categories?post=4299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learningaloud.com\/blog\/wp-json\/wp\/v2\/tags?post=4299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}