![]() The only way out of this for Smile that doesn't end badly, would be to restore the previous pricing more or less and offer an optional subscription model on top of this. Even if Smile returned to its previous pricing model tomorrow, the financial hit (caused by much reduced customer goodwill) would be substantial. This really is a textbook example of how to destroy significant amounts of goodwill overnight. If they had done this in the beginning, I probably would have equally switched to a competitor but I wouldn't have blasted them publicly. If true that would be an interesting solution to keep existing users largely on board though charging users twice the price if they've joined after a certain date could be awkward.īut even at half-price, that's still a significant price hike for most users and it's still subscription-only. This might indicate that they could extend the 50% discount for existing users indefinitely. That feedback has not fallen on deaf ears." " We've received a lot of negative feedback about "Year Two" pricing for upgraders. I've written to Smile about this and I got the following reply from them today: Here's a wide collection of reactions to this by Michael Tsai. And even if sales only went down by a factor of five and thus this whole operation would just be breaking even, they'd still pissed off 80% of their customers, which cannot be good publicity.Ĭlick to expand. Congratulations, price per unit goes up by a factor of five but number of units sold goes down by a factor of ten. And by not offering a cheaper, missing some new features version, they have priced themselves out of 90% of the market. ![]() We can argue about subscriptions but regardless, Smile picked a price that is way too high. ![]() Smile is telling me I now should pay 5x that? That's ridiculous. ![]() I paid about $30 for TextExpander 3.x in 2012 and $20 for the upgrade to version 5 last year. Make that $1/month and now we are talking. If we reversed that comparison, this would imply TextExpander being worth $400 to $500. Adobe offers Lightroom + Photoshop for twice that, a package that cost north of $1000 in their standalone versions. Click to expand.Only $5/month sounds like a small number but if every app you use semi-regularly were to charge this, you'd be out off a lot of money very quickly. ![]()
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