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That's the idea, they don't want Kellogg's paying them 50k a month because then if Kellogg's tells them they need feature X they are going to end up doing it to keep that business. This way worst case scenario they lose a couple hundred bucks a month. 37signals covers this in Getting Real I believe, but I can't find the section now.

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I definitely get the concept, but there's a large range between 500 and 50k; just wanting to make sure I'm not missing something.

There's an old rule of thumb I read somewhere (can't remember where) that says the maximum amount of money you could charge for "consumerish" software sold in the enterprise was the per-purchase limit on the average manager's corporate credit card. As soon as you went over that it meant getting approval up the org chart chain, and getting approval up the chain meant having a dedicated sales staff to work that chain. As soon as you need that sales staff, the price of your software need to go up to pay for the additional staff. In other words, it's just as hard/expensive to sell a $2,000 product as it is a $20,000 product, so charge $20,000.

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