change your pricing model
So far our team has been using Yodiz for about 2 weeks, and we're liking it quite a bit. In fact, since I manage presales and professional services also, I'm considering adding some more projects to it from those teams. It seems like it would be a good way to manage them.
However your pricing model is very odd. It's free for the first 5 users, then $3 per user per month for up to 15, then $7 per user per month after that. I would ask if this pricing is gradated (i.e. do the first 5 stay free or do I just start paying $18/month at the 6th user?) but a more general feedback is that this pricing model is just structured incorrectly.
For cloud pricing for a service like yours, you have 2 main options. You can price by edition or by user volume.
An example of edition pricing would be my own former employer, Salesforce.com:
http://www.salesforce.com/crm/editions-pricing.jsp
where they offer different capabilities at the different price points, but once you're in an edition, you pay the same amount per user per month.
An alternative would be a model like Github's, which I suspect is more appropriate to Yodiz:
Here they price by repositories, but it's fairly close.
The way you're pricing now seems to discourage more users, especially if you're at the boundary -- "crap, if we go over 15 users we pay double!" Instead you should price it like:
$0/month: up to 5 users
$25/month: up to 15 users
$50/month: up to 100 users
$150/month (or whatever): unlimited users
That way companies are incented to add users, because the more they add, the more value they get out of their $X per month (until of course they hit the cap, but you have to make money somehow).
In any case, if I do add more users, I'll pay willingly, because in truth it's not that expensive; but if we come to rely on you, I'll have an increasingly vested interest in ensuring that you guys stay in business. So price like the big guys.
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Ville-Kalle Arponen commented
I think Yodiz should be free for any amount of users until the organzation has actually adopted the tool. Perhaps free until 1000 actions have been taken and then 15 days.
From my perspective, I don't want to be changing my payment plans all the time when my amount of developers waxes or wanes.
The model suggested by Marco seems ok at least if you change the scale so that <5 users still pay $25 if they actually use the tool.
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Hi Marco,
Thanks again for your suggestions.
It is actually quite tricky issue, whatever model companies end up choosing, there will always be chance that, it might not fit for some customers. We initially started with group/bucket pricing model, but then it seemed more simpler to offer per user pricing.
Anyhow, we are considering points you raised in your post and will think about pricing model.
Best Regards,
Petra Hietaniemi
Yodiz Marketing Manager