

Reversing the Enterprise 2.0 Pricing Model - swombat
http://www.readwriteweb.com/archives/reversing_the_enterprise_20_pricing_model.php

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hapless
Revisiting high school economics, making your price and value hew to each
other as closely as possible is called extracting consumer surplus.

Your customers are not stupid. It's already difficult to get a pilot project
implemented. When they see that the 501st user is going to cost them 50% more
than the 500th, the pitch will go in the circular file. No number of clever
graphs will justify your price to the customer. Humans are finely tuned to
reject "unfair" proposals in negotiations, no matter how big a net win they
are for both parties.

This is a good pricing model, just not one you can ever show to your
customers. You would need an Oracle-esque sales force to feel out the customer
and generate tremendously complex sales quotes.

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russell
The article says pricing should start out nearly free and increase per user as
the penetration into the the enterprise rises. The concept is certainly worth
discussion, because it addresses the conflict between ease of customer
acquisition and making a profit.

