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Why is your service priced so competitively?SYMPTOMS
Throughout our years in business, the low cost of our service has been our most difficult hurdle.
Our extremely competitive pricing strategy coupled with the fact that we have not raised our prices in over 5 years typically raises concerns regarding the "perceived value" of the service.
Historically, online database-driven website solutions have been expensive. This has created certain pricing expectations in the marketplace. Most experts "value" our service at more than FIVE TIMES its current cost.
Though many of our subscribers have replaced custom solutions costing tens of thousands of dollars with our service, most simply do not believe that such a reasonably priced service such as ours can live up to all its claims.
We are often asked this question and our response is simple. There are two approaches we could take in pricing our products:
(1) We could charge as much as the market will bear on a market by market, company by company basis, or;
(2) We could set a global price strategy that is fair to everyone, yet still provides enough profit to allow us to grow our company at a reasonable rate in a global market.
We chose to base our pricing on strategy #2 and have strictly followed this strategy for years. Our reasoning is simple. We participate in a global market where companies of all shapes and sizes, operating on a vast range of budgets, are now depending on interactive tools for their website.
Our subscriber base ranges from local single operator companies to some of the largest multi-system operations in the world spanning multiple markets in multiple countries with varying economic environments. The same account that is used by some of the largest companies in the world, in some of the most demanding environments imaginable, is also used by, and affordable to, the single operator in a local market.
This is our pricing philosophy. It works well for us and seems to work very well for our subscribers, and we plan to keep it that way.