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Publisher / Editor @ CloudAve and Enterprise Irregulars. Industry Observer, Blogger, Startup Advisor, Program Chair @ SVASE (Silicon Valley Association of Startup Entrepreneurs). In his "prior life" spent 15 years immersed in the business of Enterprise Software, at management positions with SAP, IBM, Deloitte, KPMG and the like.

11 responses to “Did 37Signals Increase BaseCamp Price or Not? The Backdoor Experiment.”

  1. Krishnan Subramanian

    I wonder which vendor will want to use STFU in a free market, especially when the cost of moving to a new SaaS app is negligible. Bad business practice IMHO.

  2. Jason Fried

    What we’re doing is simple: We’re experimenting with the presentation and mix of plans we’re offering at signup. That is all. No price changes, no spec changes.

    Our prices today are the same as they were last week, last month, and last year. What you’d pay $49/month for last week is identical to this week. This is true for all the plans we have on the account chart today.

    Yesterday we didn’t have the free plan on the chart. Today we do. Right now Basic is left off. It’s possible that Max will be left off another time. If we removed the Max plan, would people be saying we dropped our prices 50%? That would be equally silly.

    We’re experimenting with different combinations and words and layouts to see what we can learn. It’s basic business stuff.

    One thing we’ve learned: Too many plans confuses people, and suggestion is powerful. We will continue to learn, as we’ve always continued to learn, by experimenting and trying new things.

    One fact is clear: No one – not a single customer – is being asked to pay more for the same thing they had before. Our prices and specs are the same as they were before for each plan we’re exposing on sign up.

  3. Real time Collaboration

    I feel it is a free market issue. they can charge the price as they see fit. I just wish they offer a free edition so that it is easier to test out more extensively

    It is worth getting out , it is real time collaboration tool, it offers a free basic edition and focus on real time chatting and project management. it is also super lightweight.

  4. Jason M. Lemkin

    Zoli I think the more interesting part of this is that 37 Signals has obviously determined that it may not be profitable, or worth the effort, to support a $24/month plan. We struggle with this a bit at the “low-end” too. First, they deemphasize Freemium. Now, they deemphasize or perhaps eliminate the smallest plans. Given their success, this doesn’t speak volumes to the sustainability of larger-scale similar businesses focused on the very smallest of user and customers …

  5. Brad

    I’m on a trial with Basecamp and the plan is $49 a month. I found that you can downgrade to the basic $24 account by doing the following.

    On your account page you’ll see buttons to upgrade to higher price plans.

    Right click over the button and grab the url. For example,

    Change the plus to basic and enter that url.

    You’ll be prompted to downgrade to the Basic plan

  6. Daniel Sweeney

    Any more details on that cheap Sprint plan?

    The link you provided no longer works sadly.

  7. Drew McManus

    Forcing customers into an upsell structure is clearly a move to cut off support requests and resource allocation for SBM users. So even though the prices haven’t changed, the focus of service has. It’s a shame too, becasue I used to use the accounts they eliminated that was somewhere in the 5-10 project range (I forget which but I think it was $19/mo). Offering an entry level basic plan of 15 porjects is imply overkill for a number of small business’ and I think 37signals i simply happy with leaving them in the cold, their profit margins are clearly keeping them warm.