Today I had a fascinating conversation with one of our Nozbe business customers about pricing and how before buying Nozbe they analyzed the price/value ratio of it:
Pricing for business users vs consumers - how we developed our pricing model…
Pricing a product like Nozbe is tricky. Actually pricing anything is tricky.
When Nozbe launched back in 2007, there was just a price for one user with several tiers based on how many projects one can have active. Later we’d give unlimited projects and create tiers based on how many users our customers could add.
When we launched Nozbe 3 we went down to two tiers - Pro and Business with different cost of additional users per account. It was a little messy.
A year ago we introduced our current pricing where we have tiers back, based on how many users people have on their team: 1, 2, 4, 6, 8, 10, 15, 20, 30, 50, 100 or unlimited…
Pricing based on value or features? How much is your productivity worth?
Now the question is:
if you’re running a team of say, 19 people and you want your team to get more organized, effective and productive - how much are you willing to spend on that?
This is exactly what I talked about with one of my customers earlier today. They are an IT company and they bought Nozbe business plan for up to 20 people for a full year and they explained to me how they finally came to that decision. It was fascinating and eye-opening.
They said they tried out Nozbe for a few weeks, decided they loved the interface, loved how it helped them get organized and wanted to get all in. Then they looked at the price tag:
- Nozbe Business for up to 20 people: $1536 US dollars for a year
Holy smokes! One and a half grand for an app?! Isn’t that too much?… But then they checked:
- It comes down to only $128 per month
OK, not that bad… A little over hundred bucks per month… but they kept going:
- When you divide it, it’s less than $7 per employee per month
That’s right, it’s like 2 cups of coffee… and usually people don’t drink this in a month, they drink this in a day… so it’s actually pretty reasonable… so speaking of days:
- Daily, it’s actually a little over 20 cents per employee per day
Now they stopped:
Seriously? Are we even debating this? We know this software works for our people so their productivity gains and thus the overall increased efficiency of our team is worth much more than 20 cents per day, right? I mean 20 cents is virtually nothing. It doesn’t compare to anything our employees spend daily on coffee or office supplies… It’s a no-brainer.
And they took the plunge, bought the Nozbe plan for a full year and today over a short video call basically told me how happy they were about their decision. Such conversations are why I love my job.
That’s right, only 20 cents per day.
And how much is your productivity worth to you? And your team members’ productivity? Let me know :-)