I’ve been considering doing a bit of experimentation with pricing lately, and I thought I’d get some feedback from folks before making any changes.
One of the things I’ve been considering is changing pricing to be a bit more balanced from first year to second and subsequent years. Right now, when you purchase Virtualmin, you pay $138-$498 for the first year, and $45 to $164 for all subsequent years. This makes the purchase a much bigger deal for that first year, but almost an afterthought in later years (assuming Virtualmin is used in a money-making capacity and is serving its purpose well).
What would you guys think of those prices normalizing a bit? Say, initial Virtualmin Professional purchase price dropping to, say, $99-$349 and renewals being a little more than half that price (say, $59 for Virtualmin 10), rather than a third? This would lead to slightly higher expenses after the third year, but lower cost for the first three. With time value of money factored in, it’s probably a pretty significantly lower price. Since our interest is in establishing long-term relationships with growing hosting providers, I’m thinking it might be best to make starting those relationships cheaper for those hosting providers.
Note that I’m not thinking about these changes because we have a desire to be the low-cost offering in this field. We don’t…if cost is a major factor in your decisions, then our own free product, Virtualmin GPL, will win every time. Virtualmin Professional is intended to be a premium offering that folks are willing to pay extra for…if it isn’t, we have failed on the product side, not the pricing side (but I don’t think we’ve failed). In other words, don’t bother telling me we should lower our prices dramatically. We’re already much cheaper than Plesk and cPanel.
If such a change were to go into effect, folks who have purchased at the current pricing would, of course, receive credits towards renewals, to make up the difference on the higher renewal price. The only thing that matters here is whether you’d be inclined to buy more Virtualmin Professional licenses if the initial price was slightly lower and the ongoing cost was slightly higher.
Thanks for reading, hope to hear what folks think of this idea.