Better Software Subscription Ideas
By
Staten Island, NY Posted: 11/18/2016 1:00:00 AM
The new trend in software is subscription based pricing, but is it right for everyone?
The software industry has changed quite a bit in the last few years. The biggest change is a shift from one price ownership to a monthly or annual subscription, which basically translates to software rentals.
Microsoft was one of the first companies to make the move, by giving customers two main pricing options, a one time price of $150 for one PC, or $99 per year for up to 5 PCs. The lower option for multiple PCs made the choice easier for households with multiple computers, giving Microsoft a good starting point for building their base of subscribers.
Around the same time, Adobe started selling their $2000 Creative Suite for an introductory price of just $49 per month. Like Microsoft, the lower priced entry point was an attractive entry point for people who had a hard time with their package price.
The problem with subscription based prices is that some people are paying for months where they don't even use the software AT ALL.
When was the last time you used Microsoft Word? or PowerPoint? or even Excel? Other than students or people with a business, the typical home user doesn't use any of those programs more than once or twice a year.... if at all. Even typical business users rarely use Microsoft Word.
As for Adobe's Creative Cloud. A lot of people are essentially casual users. They may use them once in a while, but they pay the same price regardless of how often they use it.
I'm not suggesting they get rid of monthly or annual pricing, but they should consider the option of renting their software by the month, week, or even day. This would be perfect for people who don't use it every day.
Joe Crescenzi, Founder
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