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|Thursday, April 07, 2016|
TextExpander has gone to a subscription model, and, as almost always, Michael Tsai gives you the best rundown of what's been going on. Here are two of the quotes he shares:
But if you're having a hard time following, I can sum it up even more quickly:
Smile is charging the consumer market too much for their subscription to TextExpander.
Charge consumers $2 a month, $20 for a year for recurring subscriptions, and you'll see folks signing up and paying with as much laissez-faire as they do their overpriced phone bills. Problems solved.
These micro-subscriptions are just smart. Now you've got a workaround for trials, as someone can now experience all of your service for $2. And you've got a workaround for updates, since you're charging everyone for the upgrade every month.
But the conversation about subscriptions in general is interesting. And powerful. I caught a little of the Back to Work podcast on the topic, and the TextExpander stuff starts at 45:25 (btw, why, oh why are so many techesque podcasts so danged long? Sheesh. Shout out to Manton's Timetable.)
A while into their discussion, after all the description of what TextExpander does, is this:
So there's my point... if it costs more to cover features folks don't use, well, people will leave. I think most people quickly realize this subscription isn't just more cash than they were paying before, but a lot more cash. As Tsai points out:
More interesting is this:
So for HPVD, that's $8-$12 for Hulu, $15 for HBO, $8-$12 for Netflix, so $31-$39 a month. Sheesh, Higher Pitched Voice Dude. That's a lot. LPVD is right on the money -- That's a lot to pay for something you use "a bit". Do we really think we couldn't lose $1-2 a month for TextExpander in that bucket of monthly payments somewhere?
Quick point: Katie Floyd does not frame this correctly:
ARGH. Comma splice. Hate it. ;^) /rant
Actual point: Business is not welfare. You have to earn the money. They're asking for too much money.
If they were 12 bums and they refused handouts of less than $5? Might work. But it's chancy.
Prediction: Smile drops the price for consumer use.
Edit 12 April: As an old, fat, bald, orange man would say, I believe I had that.
posted by ruffin at 4/07/2016 10:23:00 AM
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