One suggestion that came out of responses to my recent blog post about creating a free “Lite” version of DONATION (and other posts I made on a couple of software development/business forums) was to reduce the pricing levels. I like that idea, because it would reduce the confusion about payments, and reduce support for me when people exceed the number of donors for their pricing level.
As most of you probably know, currently Full Licenses (for the initial year) are $60 for under 200 donors with donations, $90 for under 500 donors, and $110 for unlimited donors. For the network version, it’s $110 per simultaneous user (not per computer it’s installed on). The Annual Renewal fees are half of each of those prices.
I did some investigation in my database of users and payments, and found that the average Full License price paid this year so far was $69, $137 for the network version. The average Annual Renewal price was $36, $63 for the network version. (Not surprisingly, the average Annual Renewal prices are not far off from half of the annual Full License prices.)
So, I’m thinking that I could change the Full License pricing to be $80 for the regular version (unlimited donors) and $150 for the network version (unlimited simultaneous users). The Annual Renewal prices would again be half those amounts. That would be a slight increase for those with under 200 donors, but a decrease for everyone else. (And an increase for network version users with only one simultaneous user.)
What do you think? Would the slight increase for those with under 200 donors scare any existing users away? What about new users? Probably my closest competitor is Donarius, which is $60 for unlimited donors, $45 for max 100 “active donors” (which is a complex definition). But they charge extra for extra features, like gift in kind receipts, personalized letters & receipts (which I think is equivalent to my mail merge features) etc.
And of course, if anyone thinks the $80 Full License, or $40 Annual Renewal is too much, they could consider backing down to the free Lite version.
I’m also thinking that the Lite version would replace my current free license criteria (under 50 donors, under $5,000 total annual income from all sources, no paid staff using the program). Anyone who currently had a free license could either switch to the Lite version, or pay, when their next renewal date came up. (That’s assuming, of course, that they did want to continue their eligibility for support and upgrades – otherwise, they could just do nothing and keep using that version.)
Your thoughts? Thanks.