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Tuesday, January 27, 2009

Sprout Builders Comments On Pricing

Thank you for responding to the overwhelming questions and comments from me as well as of many users who are, and were concerned with the pricing schedule you had published in the original email. You will note that your current email statement that was received today 1/27/09 is in bold and my thoughts on this new schedule of pricing is below each section.

We have been listening to our users and made some adjustments to our pricing model, in particular raising our # of projects. So now the entry level for our existing users will be $13/month for 5 projects ($2.60 per project). Our entry for new users is $19/month for 5 projects ($3.80 per project).

Ok, $13 a month? Is that for the one year or is it for life? I assume you meant it for the year as a thank you for your testers. Either way, I think we are listening to a separate group of users. The way this price would make somewhat sense to me would be charge the rate on actual products being sold and used. Mock ups excluded. Even then, it would only make sense to me if I could cancel a sprout when the client or myself is done with it. Like a trade in program. That is if I am in the business of selling.

Question: What about the personal users? At $13 a month that is $156 a year. I could not and would not pay this amount for something I do not have complete control over (meaning use it or not; change it or leave it, size, links etc). Again we are talking about a piece of promotional space. My main site is $105 per year with damn near unlimited bandwidth and all the creative control I want.

Question: Why would I pay more for the limited punchy splash ads than I do for my entire site?

Let’s also look at the designer who can sell this: Ok, I have 5 sprouts. Two are going to be a part of the design and will stay with the client’s page for a long duration of time. The other 3 are going to be used by clients who have specials coming up in the next month or so. After that they are yanked and looking for a new home. Will I be limited to the size it was originally created? What about the bandwidth. If this a promotional product I want it everywhere; which by the way this product is designed to do; it goes to 100 more sites for display and promotion.

Question: What happens when your bandwidth is reached? Are we cut off? Charged extra?

My Statement: This also means that I have to keep a monthly tab going to the client for the entire life of that project. I can no longer sell as part of the design package. Which limits me as a seller and costs me more in time and effort to keep books on monthly payment.

Question: What happen if the client defaults? Ok, dumb question – I pull it, I know. Please refer back to the previous paragraphs and questions.

If you purchase an annual license the price per sprout projects drops to $2.16 per project for existing users and $3.16 per project per month.

True, that is if I use all 5 – right. The total still would still be $129.60. Again what I have been hearing from you general audience myself included this would be a fair rate of return if it was a high number or unlimited Sprouts that could be created and used.

For a software as a service model that provides you with a platform we have built for 3 years, we think this makes sense. We have never put ads on our product and this is our way to continue providing a professional grade product that is not hampered by ads.

Not true: Every non-pro account has your name pasted at the bottom of each sprout and it is encouraged to be spread (again that is what it is designed to do). Unless I need to re-educate myself with marketing that is considered advertising.

Please tell me what you think and feel free to email to directly at carnet at sprout domain name.

It may be that I am wrong in my train of thought and if so except my apologies. I can only speak for myself in this, so it is my opinion that your product is still over priced for the market. That market being the home/personal user and the small business user. Again it’s only an opinion.

I just tried posting this on their forum and it appears they now have the moderation screen turned on. They need to approve your posts now before leting the world see it. -hummm.

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