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Great example of what I am talking about.


I don't think they are the same. We used to provide training for high-end medical devices. The manufacturers would often have a lot of features that looked good on a spec sheet but they were so complicated to use that no doctors ever actually used them.

Technically, they had the feature but the feature didn't help the doctors be better doctors. Features don't automatically translate to outcomes.


You are comparing Garage Band to A High End Medical device?

    Technically, they had the feature but the feature didn't help the doctors be better doctors. Features don't automatically translate to outcomes.
How can you determine utility of a feature before it is built? Well the answer is you cant! And surely not for a High End Medical device!

In fact your whole argument is based on incorrect assumptions, well if you are building something like a GarageBand or one of the Me Too To Do list/Collaboration apps, go ahead sure do whatever you want. But when you are creating an EMR software or an MRI machine which costs Millions of dollars you better make sure that it has all types of features and customization capability.

The problem is that you are confident in your skills as a developer to predict the needs, While your hunch might be correct with software that is used in daily life, it might be totally wrong while making something that is not

Also "What people can do with your software" is a subset of "What software can do". Thus its the software that is the limiting case.


I agree with points 2 and 3 but point #1 is a big stretch. Drop that and people will take the article more seriously.

Chargify isn't blaming their customers for incorrect assumptions, but their customers are feeling the effects of their incorrect assumptions.

With the way things are now at Chargify it costs more to maintain/support a current customer than that customer generates in revenue. You can afford to grandfather old accounts if you can still at least break even on those accounts. If you can't then you have to do something like what Chargify did or your business will cease to exist. The key is to do all that you can to not put yourself in the position that your support costs are so high that you can't be profitable on existing customers.

I blogged more about it here:

http://www.bluemangolearning.com/blog/2010/10/building-scala...


> You can afford to grandfather old accounts if you can still at least break even on those accounts.

They could have grandfathered the existing accounts for at least 6 months or so, but giving any user -- whether a paying customer or a free user -- only 30 days to start paying $100 a month when many of them expected to be paying little or nothing for quite some time? Well, I think that is the height of arrogance and disrespect for the customers on which your business is built -- and an exceptionally effective way to alienate all those free users who MIGHT have become paying customers if only they had been given a reasonable amount of time to adjust to the change ... or even a reasonable new rate for small volume users.

Why not offer something like $5 a month for up to 10 subscribers instead of basically kicking all their free users in the groin? Most small businesses would not bat an eye at such a small charge even if they had only 30 days to start paying or abandon Chargify. But did they offer such a service?

No, the fact remains that the guys at Chargify appear to be way too naive for any serious business to trust or rely on them at this stage of the game. They didn't "get it" when they made their blunder and from what I have seen they still don't "get it".

But no worries, there are others that will pick up the slack ...


Are they users or customers?

You cannot alienate customers that are not your potential customers.

The beauty of this service and the United States is that nobody is forcing you to use Chargify. Also, if you do use Chargify, you can stop at any time, without any penalty.

In fact, Chargify uses an API, so your application can be written in a way that competing and alternate services can be integrated into your application (without requiring major rewrites to your application).


The problem with charging for actual usage is that most of Chargify's support costs are probably incurred while their customers are setting things up. And that is when they don't have any users. Once you get chargify set up you don't have to touch it too much.

Regardless though, this was a bad way to handle the price increase.


Are you suggesting that basic customer lifecycle management is an issue for them? That's not exactly reassuring.

When you determine pricing, you figure this out. Every business has customer acquisition costs.


ScreenSteps Live combines a hosted documentation service with a desktop client for quickly creating screenshot based documentation. It also integrates very nicely with Zendesk. You can see an example here:

http://help.screensteps.com

Or, here is another example site we set up:

http://ipad.screensteps.com

Very simple to use and very effective. You can read a case study here:

http://www.bluemangolearning.com/screensteps/case_studies/se...


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