Monday, November 8, 2010

Are There 2000 Customers for You?

Jason Fried with 37Signals wrote this interesting take on their iPad app DRAFT offering this year: http://www.inc.com/magazine/20101101/go-ahead-raise-your-businesss-prices.html
Take a minute and wander over, it's good stuff.

While it is a great idea for those that have limited products and limited customer base, the only BIG lesson here: know your market, and more importantly, know yourself. 
Jason's small company admittedly wasn't using a product to garner additional customers. In fact, this was just an ADD-ON to their already in existence Campfire products.
This example is worthless to most business folks.
1. They ARE trying to draw more (Jason has a built-in customer base).
2. It means little to those that don't have inter-connected product lines (this had a specific design structure, it works specifically with Basecamp).
3. They are not trying to draw other customers in  (only the RIGHT customers, Jason says).
There is NOTHING wrong with such a niche-specific offering and it being offered at the price point they did. It was smart. Too cheap (FREE) and it devalues their current offerings, too much and who buys?
If you had 2,000 dedicated customers and knew they were willing to pay $10 for such an app, what's next?
I'm guessing, bundled into current offerings at reduced price. Right?
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