Priced For The People By The People

InCloud Control is a Georgia-Based company that makes really good business execution software for small manufacturing companies.  Small business is what drives the US economy, so why doesn’t anybody make business execution software they can afford.  These 10-100 guy plants have to compete on a daily basis with incumbent enterprise giants.
A recent Gartner report on the cloud-based ERP market describes where we identified the problem –

“Small manufacturing companies with revenue between approximately $200 million and $1 billion, and up to 10,000 or more employees. Typically, companies of this size have limited IT resources and seek ERP systems with low total cost of ownership (TCO). Nevertheless, they look for solutions that offer broad and deep functionality.”

Really?? 

That’s what you call a small manufacturing company?  If companies with an annual revenue of $200 million to $1 billion have limited IT resources, what chance – do the over 19,000 actual small manufacturing companies in Georgia – with less than 100 employees – have to equip themselves with even the most “affordable” ERP systems in the market?
The entire technology budget for a 100 employee manufacturing company is around $50K per year.  That’s all their PCs, laptops, phone system, internet, software licenses to run the business, and that tech guy that comes around once in awhile to run network cables or give Mary in accounting some desktop support.  That’s for everything.  Do you really think it’s feasible with a budget of $50K that a business owner is going to pay even $100 per user when the minimum users he needs to bring on board to make the system work right is 10?  That’s $1,000 a month, $12,000 per year and you just ate up almost a quarter of this guys entire technology budget.
It just didn’t make sense to us.
So we asked our customers; 

“At what price point would they be crazy not to use InCloud MX?  And better yet, at what point to do you look at us and say that we are crazy for offering a solution this good for that price?”

We got back a bunch of reasonable price points and packages that all made really good sense to us and to the customer.  But then we asked ourselves, could we do it for less.  Could we make our product actually priced at a point that “EVERYONE and ANYONE” all the way down to a single one-man-shop could afford to get onboard as an InCloud Control customer?
I am the CEO and I thought if we could deliver our MX product for $99 per user, then what was stopping us from delivering it to the small business entrepreneur for $10 per user?  My CFO hates me!  But my CTO freakin loves me!

“Do you have any idea how crazy that is?” was what came out of my CFO’s mouth next.  And that soon followed with both my CTO and I saying in unison…”That’s exactly what I was hoping you would say…Jinx buy me a coke…Jinx buy me a coke…”

There we had it.  A simple system designed to be simple to deploy – simple to use – and priced for the masses.

$99 per month for a 10 user pack