This looks very slick.
I think you might be leaving some money on the table in terms of the pricing, though-- I imagine that heavy users would be willing to pay more than $19/month for the "Unlimited" plan.
I think you might be leaving some money on the table in terms of the pricing, though-- I imagine that heavy users would be willing to pay more than $19/month for the "Unlimited" plan.
We undercut our competition by a good amount, so we've certainly been talking about it.
Note that mockups is not something that can go viral, so your marketing costs will linearly scale with every new customer. $19/month looks great if service is viral but for business apps like yours it can prove to be a growth bottleneck.
Rambling aside, suppose 6 months from now when the hype around the cool new mockup tool has died, how do you plan to get new customers? (Hint: whichever method you choose, chances are than you are going to pay for it and that will come out of your revenues)
Then again, I'm really glad Mocksup appears to be worth this discussion. Since this is a side-project for both of us I'd much rather you guys fuss at our pricing then just about anything else!
You (should) know your market better than anyone else, but be careful on competing with price. Competing with price is sometimes a crutch for actual marketing and a wishful shortcut in demonstration of value. Because, as mostly hackers, generally speaking we aren't great at marketing. And so, subconciously IMO what happens is we think "i'll let someone else market the idea with their higher price product, and then i'll swoop in with the cheaper offering".
Unfortunately, it doesn't work out that storybook. Markets aren't that transparent, and there is always an asymmetry in information. You're going to have to demonstrate real value and claw your way into relevance. So initially you will have to do a lot of "hand-to-hand combat" style marketing. And find key differentiators you can lead with that isn't price.
How about pricing it at $49 and then running a promo for initial new users? First 100 customers get it at $19?
As an aside, I spent $79 on Balsamiq last year. I think that is the most I've spent on software in the last two years (I stick with mostly open source / freeware). But it was a no-brainer for me... their marketing materials convinced me that the ROI was there. The value for me was probably much higher, but past $99 you enter some psychological pricing barriers.
http://www.startuplifeblog.com/tag/ltv/
But personally, I try to keep my CAC below 15% of my LTV.