FoxyCart v1.0 and New Pricing

brettbrett FoxyCart Team
in Important News edited June 2012
Hello wonderful FoxyCart community.

We've brought this up in the past (quite a while ago, 2009/2010), but we've finally settled on what we think are some good changes to our pricing for v1.0 (our next release, currently in private beta) and beyond. Please give this blog post a read, and comment either there or here if you have any thoughts at all. We're big on feedback, and very much want to hear what you have to say about this change.

Please give the log post explaining the pricing, the what and the why a read, then review the new pricing/signup page.
Thanks!
Comments
  • sccr410sccr410 Member
    edited June 2012
    Per transaction pricing is going to kill probably about half of our clients who would be wiling to use FoxyCart. I would say that is actually the primary reason our clients don't want to go with Shopify which does a % transaction fee. It makes people feel nickle and dimed and are getting ripped off - leaves a bad taste in their mouth when evaluating different options.

    It's just a matter of perception though and I will try to remind clients that FoxyShop will still be a great option and very affordable for what you get. But I do think this will be something novice users will not like seeing. Novice users are just learning that e-commerce isn't a cheap endeavor to do right and so with every thing they run into (merchant account fees, payment processor fees, transaction fees for card processing, etc) they never knew existed and then you add more for FoxyCart it might push some people over the edge and look elsewhere.
  • lukeluke FoxyCart Team
    Thanks for your feedback, @sccr410. One of the reasons behind this change for us is to help people better understand the value of the system we've built. The infrastructure we've put in place isn't really for the novice user trying out a hobby for money. It's more suited to a business owner who has invested in developers and wants things done right.

    With our current pricing, the novice is subsidizing the advanced user. Many stores starting out think they will be doing hundreds of sales a month, but that's usually just not the case. If they aren't doing many sales, the price will actually go down for them (if they pay annually). If they are doing a lot of sales, the value they are receiving far outweighs the cost (in our opinion).

    Thanks again for your feedback, we certainly appreciate it.

    As you talk with your clients, how many sales do they plan to have each month? We'd love to know more about the value proposition as they see it. We built the value calculator on the pricing page hoping to communicate the value.

    Unfortunately, some may go elsewhere and learn the true cost of doing business online. We're OK with that. We'll be here when they want to come back. :)
  • RolfRolf Member
    If you spend such a long time on thinking how to come up with new pricing plans you better be confident that it is the way you want to go, else it's a lot of wasted time :)

    Overall I'd say I agree with most what has been written and said; I think it comes down to the fact that when you do business online it's not cheap and if you're serious you can afford it. People are still getting used that more and more is SASS these days and everything costs money every month.

    If there's one thing I have to mention than I would say the jump from standard to advanced is a bit big. Going from 100 transactions for $15 to $250 and 1000 transactions is a lot of money if you are just doing like 200-300 transactions especially when the price of a product is not a lot.

    @sccr410, I see where you're coming from, but also think FoxyCart (or FoxyShop) can't really be compared to Shopify which is a whole different system.. Shopify was not an option for me in one case because of the lack of flexibility in the product-creating-business. FC is more a cart system that doesn't deal with the rest of your shop-stuff. I haven't used FoxyShop so can't really comment on that though.

    Cheers
  • lukeluke FoxyCart Team
    @Rolf: Thanks for your feedback, we certainly appreciate it.
    If you spend such a long time on thinking how to come up with new pricing plans you better be confident that it is the way you want to go, else it's a lot of wasted time

    That's the main reason we've been so open about the process, including surveys, blog posts, forum discussions and the like. We want something that is fair while still communicating to serious businesses that FoxyCart is a serious solution for them.

    We're going to work to improve the pricing page to make it clear there is no jump from $15 to $250. It scales very gradually based on the 15 cents per transaction from $15 all the way up to $250 at which point the per transaction amount drops to 5 cents per transaction.

    That's not super clear on the pricing page, but we're hoping the value slider makes that more obvious. We're also still tinkering with the actual cut off amounts between plans and looking at options for store's who have low per transaction costs and might not feel so good about 15 cents per transaction.
  • brettbrett FoxyCart Team
    If there's one thing I have to mention than I would say the jump from standard to advanced is a bit big. Going from 100 transactions for $15 to $250 and 1000 transactions is a lot of money if you are just doing like 200-300 transactions especially when the price of a product is not a lot.
    Like Luke said, there's no jump there. It's gradual from $15->$250->$2000 and beyond. But this was one of the most common responses on the survey, so apparently we're not doing a great job explaining it.

    One possibility we explored was focusing on the per transaction fee rather than the monthly fee. So instead of leading with a big $15/mo we'd lead with a big 15¢/transaction, then underneath say that it's a minimum $15/mo. Do you think that'd help?

    Another possibility we're thinking of in response to this is a sort of "build your own" plan. To be clear, this probably _isn't_ something that'll roll out immediately, since I'm hoping we can address it with better communication. But we're thinking that maybe you could set a monthly fee with the price slider to make your own plan in between. If you know you're going to do ~500 transactions/mo, you could create a plan at $75/mo, and perhaps you get the transactions discounted or maybe you get a 15% overage allotment or something (so if you're slightly under or slightly over you still have a fixed monthly cost and don't have to worry about that changing for your budgeting).

    @sccr410:
    I would say that is actually the primary reason our clients don't want to go with Shopify which does a % transaction fee. It makes people feel nickle and dimed and are getting ripped off - leaves a bad taste in their mouth when evaluating different options.
    We'll be posting the results of the survey next week, but the results might be _really_ surprising. The most clear result shows that new users (ie. users that aren't already paying FoxyCart a monthly fee, and therefor have no (or less) anchoring on the current pricing) prefer tiers based on transactions above a single tier or tiers based on pricing. Also, everybody hates %-based fees. Flat per transaction fees beat out %-based fees pretty solidly. Not to say that everybody likes them, but the feedback we've got is actually much more positive than we'd anticipated.

    I say that to let you know that hopefully your clients will see the value in it. But we're definitely still very open to feedback on how we can better communicate things and make it an easier pill to swallow for some.
  • RolfRolf Member
    I must admit that quickly after I posted my reply I thought about the 15¢/transaction fee and that there's no forced upgrade to the advanced plan. The 15¢/transaction fee is very reasonable I think. It's not a lot of money, even if the price of the product is as low as $5 IMHO.

    BTW- I did not see the new pricing page. I like it, the slider is nice & clear.

    As I said, I think the pricing is fair and still a good option for smaller shops; People who are serious about their business should not have a problem with it. It's usually the "hobby" stores that started with cheap hosting and a opensource (free) cms and don't understand why it should cost anything to begin with ;)

    Rolf
  • edited July 2012
    While I still have my reservations about the amount of the transaction fee (such as FoxyCart isn't processing like a gateway where they're authorizing credit cards [that's the gateway's job...where they already charge us a fee like this]), Luke and Brett have definitely calculated appropriate amounts to "step" you up "gradually" from one plan to the next. It's not like you'll see a huge jump from Standard to Advanced.

    0k.png

    In fact, it seems that you get a pretty good gap in savings before it's cost efficient to upgrade to Advanced from Standard, since you reach your 1,000th transaction at $155.00 total cost on Standard, where as those same 1,000 transactions on Advanced would cost you $145 more (if I'm doing my math correctly).

    The biggest concern where I can see clients having problems is that their cost used to be "fixed", and now that it's not, it complicates how they'll expect to estimate their cost of doing business. There are different schools of thought on this, especially with cloud services and pay-as-you-use models popping up, so I won't go into detail in this post.
  • billembillem Member
    As a merchant who would fit into the top tier, I dont mind paying more but the service and support has to match the increased fee. If I go from $250 a year to $5000+ a year, I would expect additional benefits.
  • brettbrett FoxyCart Team
    @billem, did you see that he Advanced plan includes live chat and phone support? (It also will include the custom subdomain at no additional cost.) Would you be looking for something beyond that? We intentionally made our pricing as "unlimited" as possible, and try to give the best level of support we can to _all_ of our users, but we're certainly open to suggestions so we can meet our Advanced users' needs in the best possible way.

    As far as Enterprise goes, at that level you certain get the "additional benefits" you'd expect, though what those benefits are depend on your needs and budget. Different enterprise users want different things. If you'd like to chat definitely give us a call.
  • billembillem Member
    Thanks again Brett for the phone support today. As suggested, the ideas we discussed I believe are worth paying for on a transactional basis. Looking forward to the new versions!
  • blacblac Member
    For transactions under $2 there is a minimum 1c charge per transaction.
    Would that also hold for free promos - such as free downloads, or free subscription trials?
  • lukeluke FoxyCart Team
    @blac, yes, but that's only for transactions that go beyond the bundled amount you get for free. Our experience has shown that many stores over estimate the number of transactions they will process prior to going live.
Sign In or Register to comment.