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I used to be of a very similar mindset to you. Then I launched HR software for businesses that charges £3 per employee per month. My logic in setting our prici
by simonswords82 9y ago
I used to be of a very similar mindset to you. Then I launched HR software for businesses that charges £3 per employee per month.
My logic in setting our pricing was exactly the same as yours, if a business is spending £XXXX per month on an employee, why would they possibly scoff at paying £3 per month to ensure that the HR and associated documents/policies etc are correct and compliant? I even went so far as to say if a customer is prepared to spend £3 per employee per month in getting their HR right, I don't want them as a customer (arrogant much?).
To cut a long one short, boy was I wrong. We've had to be steadfast with our pricing model because the comparison people make is not the one you and I want them to make. E.g. I spend X on my staff so this trivial expense by comparison is nothing. Instead people compare the cost of our HR software to £FREE or to that of our competitors - who are in a race to the bottom undercharging one another.
Slack is going to have the same problem unfortunately. Their's could be the best collaboration software in the world but businesses can and will find ways to achieve the same benefits for a lesser cost.
- mstade 9y agoThe problem with spending even $1 in a large organization is that someone's going to have to sign off on it. Its always easier to go for cheaper or free then, since you can argue fiscal due diligence (even if it may not be in the long run) and thus have a stronger case for whoever is making the call. This is why gentlemen's agreements with clients to overbill a day or so instead of charging for travel expenses and the likes can be much better for everyone involved. (N.b. can be, it isn't always better.)
- IshKebab 9y agoI agree. The barrier to spending £3 in a business is rarely the £3. It's the "we'll have to talk to procurement, fill out a PO, get three quotes, etc." admin nonsense.
- zimpenfish 9y ago> Slack is going to have the same problem unfortunately. Given the number of places I've worked that have migrated from Yammer / HipChat / etc. to Slack because of the cost, yeah, they might well.
- itsdrewmiller 9y agoI don't think HipChat has ever been more expensive (or even the same price) as Slack.
- apple4ever 9y agoAgreed. Their cost is outrageous really. I've looked at just doing it for our small team of about 20, and I'm not paying that much per month.