Everyone has heard the old proverb "you can't have your cake and eat it too." Once you've had your cake, it's gone and you're on the hook to buy or make another. However, in the world of product pricing, we've found a way to provide our customers with more tiles (cake) while keeping the cost down (so you don't have to spend more for another).
Several years ago, we started building Jive widgets (now tiles) for our Jive customers. A custom tile could be reasonably priced between $15-25K depending on the depth and complexity of its functionality. As we built more of these add-on products, we decided to offer them as a package. When we launched this package, for the price of just one product ($25K) you could receive all 7 of our most popular tiles at that time. We would charge that price annually providing upgrade safe support and innovation. The concept was right, but the cost and value ratio was not.
Tiles for all
We are fortunate to have worked with over 500 diverse clients, many of whom are in the small to medium-size market. In order for clients of all sizes to gain the benefits from our products, we made two pricing changes about two years ago. We dropped our a la carte pricing down to the $3-5K a year range per tile and also reduced our package price down to $10K/year. Today, over 100 Jive customers own one or more of our tiles.
Today, you can receive 11 of our tiles for that $10k/yr with the upgrade safe support and innovation included.
We want more products!
A few months ago, we inventoried all of our custom Jive project work and found over a dozen tiles, integrations, and other products. We will share those on our website and AureaWorks with a la carte pricing soon.
Product positioning dilemma
Why would we present all of these new products but not add them to the Tile Pack? The issue is that to support adding new products to the package, we would have to increase the cost or have more new clients purchase the tile package. We do not want to increase the price!
So we're offering all of the new products with a la carte pricing. Additionally, we will add one of them to the tile package — product number 12. You can help choose what that will be by voting in this poll. However, we won't add it until we receive 12 additional tile package customers. Learn more about our "12 for 12" program here.
By doing this, we will have the client base to support 12 products in the package but do not need to increase the cost of the package. It will still cost the same $10K/year. If this works well, we could look to add additional products using the same approach. We expect our clients will respond favorably to receiving additional products at no additional cost.
How to get the new product faster
Just like in our consumer lives, prospective clients look to peers to help them assess buying opportunities. We believe that if clients signal to their peer group the value they are receiving from our tile package, this will accelerate the purchasing cycles and thus get everyone the 12th tile faster.
Help us spread the word!
- Post and rate your personal experience of our products in AureaWorks and tag Social Edge Consulting
- Tweet about your experience with our products on social media. Tag us @social_edge and use the hashtags #myTBSEstory and #TBSE12for12
- Add a review and rate our Tile Pack or any of our tiles in our online store
- Privately let a peer know about the value you received from our tiles
We think this will result in a win for everyone involved. It will allow your costs to remain stable while still increasing the value of new products and innovations. Maybe not as tasty as cake, but it will be the next best thing.