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Chargify New Pricing

chargify.com

131–140 of 167 posts

Re: Chargify New Pricing

#131
post #72

Earlier quoted context omitted.

Just a note that Recurly did this exact same thing several months ago, though they've since changed their prices again. We were literally 1 day away from launching on Recurly when they changed prices. Spooked by the sudden price hike, we spent a good deal of time re-writing our ecommerce on Chargify. And now this. Maybe it's time to just bite the bullet and roll our own solution. Spreedly doesn't provide the same fun…

> I haven't worked with CheddarGetter or BrainTree directly. Let me put a big +1 in for BrainTree, then. Especially when coupled with something like their Ruby gem ( http://rubygems.org/gems/braintree , written by them, not even someone else's implementation) or ActiveMerchant, it's really, really easy to integrate. Plus, since when does your card processor have articles about their git process? ( http://www.braintre…

Do you have any experience with Braintree's subscription payment service? How does it compare?

Re: Chargify New Pricing

#132
post #114

My name is David Hauser (@dh) and I am a founder at Chargify as well as the Grasshopper Group where I have spent the last 7 years serving hundreds of thousands of entrepreneurs and helping them to succeed. I want to respond directly here and invite anyone to reach out to me personally on Twitter or email to talk about this or anything else. We made a mistake with how we implemented and communicated a massive price in…

I was blown away by the newsletter earlier today. It felt like I got punched in the stomach by Rocky Balboa himself.

In the beginning I considered the same billing service providers that I'm sure every other Chargify customer has considered (Spreedly, Cheddargetter, Recurly, etc). The main differentiator was your pricing model. It was the fact that I could launch my product and see if I could get to those first 50 customers before I had to pay you. You made it almost a no-brainer because of your pricing, it was perfect for people like me just starting out. It was inspiring that you were putting trust and hope in your customers. 10 months later, I'm completely integrated with Chargify, have an app in the wild with real users, and boom... All of a sudden Spreedly, Cheddargetter, Recurly, etc are looking a lot better.

Aside from the massive price increase, I (like many of your beta users) spent a year testing out your application and giving you a lot of feedback to improve your product. I have also responded to several of the "[name] is looking at Chargify, can anyone help us out?" tweets and have said nothing but great things about Chargify since day one. I have helped several of your customers via email, support forums, blogs, and twitter with integration issues, and more-or-less evangelized your product. And I'm happy to do that for great services, and I'm guessing I wasn't the only one. But this was all under the impression that what I signed up for was what I was, well, signing up for.

Receiving that newsletter made me feel like I was (we all were) being used to help establish Chargify as a viable option, only to get shit on in the end... and that sucks. It's a horrible feeling.

I understand your needs for a price increase and that you can't support freemium at a massive scale, but to be honest, even $39/month is $39 more than what I signed up for considering the first 50 customers were free. I never have needed (and probably never will need) to call you on the phone, so I'd be happy to be on a plan where 24/7 phone support isn't an option.

It seems like your early beta testers and customers, who shouted to the world how great Chargify was, should if nothing else at least be given exactly what they signed up for. Now I'm just getting started, so I don't know the ins and outs of business, but that seems like an obvious play to me.

Unfortunately, there's now a big lack of trust in Chargify... what will happen to its customers in 2 or 3 years from now when we're even more locked in? After this move, that's a little scary, and potential grounds for departure.

Re: Chargify New Pricing

#133
What I like about this is that Web Apps are now starting to remove the free plan. Makes it more exciting. People need to get used to pay, and not get everything for free. That way we can make money!

Re: Chargify New Pricing

#134
This is a truly despicable and irresponsible business decision. Not only did Chargify pull a bait-and-switch but they completely pulled the rug out from under both developers and merchants by providing virtually no warning on this price change. Unfortunately, we launched with Chargify just a few months ago. Big mistake!

Ning.com did this not long ago but did it in entirely responsible manner but providing many, many months of notice.

Re: Chargify New Pricing

#135
post #114

My name is David Hauser (@dh) and I am a founder at Chargify as well as the Grasshopper Group where I have spent the last 7 years serving hundreds of thousands of entrepreneurs and helping them to succeed. I want to respond directly here and invite anyone to reach out to me personally on Twitter or email to talk about this or anything else. We made a mistake with how we implemented and communicated a massive price in…

One of the problems you have is that your reason for pricing doesn't jive with how you're doing it. If it's really a question of support costs, just charge for support at the lower tier(s).

Plus let's be honest, once someone is up and humming, support costs for them (provided your service is as solid as you sell it to be) shrink very drastically.

I'm all for you making money, we want you to survive as much as you do. But given the locked-in nature of what you're selling (i.e. you've got us by the short hairs), and the extremely high cost to integrate with you, waking up one morning to a massive change like this is deeply, deeply unsettling.

Re: Chargify New Pricing

#136
post #114

My name is David Hauser (@dh) and I am a founder at Chargify as well as the Grasshopper Group where I have spent the last 7 years serving hundreds of thousands of entrepreneurs and helping them to succeed. I want to respond directly here and invite anyone to reach out to me personally on Twitter or email to talk about this or anything else. We made a mistake with how we implemented and communicated a massive price in…

Yeah, not to pile on... but I have to believe that pricing, at least on the lower end might be out of whack with what I still think is your target clientele - a group that likely all have some inhouse development resources. Faced with the reality that at least some integration is likely to be needed, I'm not sure Chargify would even get on my radar given the new pricing structure. To me, I always thought Chargify was "get full fledged service up and running quick, by the time we're rolling along, why mess with a good thing".

The PCI compliance bit is somewhat misleading, as at least for integrated solutions, just because Chargify is PCI compliant, doesn't let us off the hook. So if we have to be PCI compliant(integrated solution), we are basically paying for dunning management? I'm being facetious but hopefully that illustrates what others are probably thinking. My approach will now be, build out simple customer management system, tie into a payment gateway and build out related services as site/business grows.

Sucks for me... I spent a decent amount of time integrating/understanding how Chargify works and now I realize that Chargify is simply not an option(trial users were actually my biggest draw).

Anyway, you have guys have built a great service. Wish you the best.

Re: Chargify New Pricing

#137

Earlier quoted context omitted.

> here are plenty of people who want to start subscription businesses, and out of those, the vast majority will not succeed and will actually end up costing more than they ever bring in. That's not exactly news, that's why you try to get a good grip on the life-cycle of a cross section of your potential customers before you set a pricing scheme. A free customer should work out at any level of scale and any life cycle…

> Wait until they start getting in to more and riskier transaction volumes, they'll have to add up to 30 cts per transaction worth of fees for various services to help with scrubbing the bad stuff from the good stuff to keep the chargeback rates in check. Selling a billing logic service to businesses isn't exactly high risk. Their customers' users' payments do not go through Spreedly/Chargify... they just talk to the…

Yep, I got it now. They're even thinner than I thought they were.

I figured they did the actual processing but they just pass that on to an upstream provider of such services.

Interesting niche.

Re: Chargify New Pricing

#138
post #114

My name is David Hauser (@dh) and I am a founder at Chargify as well as the Grasshopper Group where I have spent the last 7 years serving hundreds of thousands of entrepreneurs and helping them to succeed. I want to respond directly here and invite anyone to reach out to me personally on Twitter or email to talk about this or anything else. We made a mistake with how we implemented and communicated a massive price in…

I still feel like it was a bait-and-switch to me, after having written an integration for one of our apps that was supposed to go live TODAY, only to find out that we had to reevaluate all the billing solutions... again. Good lesson for companies that buy these solutions - make sure your agreement does not let the vendor change their price on you whenever they want with no notice, especially when you are integrated like this. Having one more comment saying that we didn't like the pricing change probably won't change anything - but it sucked to get ready for a go-live today and then have to put on the breaks. I spent my weekend finishing up the integration and Monday find out that that time was spent integrating with a company that has basically no regard for the smaller users. This $39/month plan doesn't restore our faith in you - we're more likely to build something home-grown at this point just so nobody can do that to us in the future. After all, you make us buy authorize.net, then customer information manager... so we could build basically the same thing integrating to authorize.net's ARB (automated recurring billing) system for $10/month. I still am not getting my weekend back, or the stress from getting burned by you guys today.

Re: Chargify New Pricing

#139
post #114

My name is David Hauser (@dh) and I am a founder at Chargify as well as the Grasshopper Group where I have spent the last 7 years serving hundreds of thousands of entrepreneurs and helping them to succeed. I want to respond directly here and invite anyone to reach out to me personally on Twitter or email to talk about this or anything else. We made a mistake with how we implemented and communicated a massive price in…

Hey David, I suggest a massive course correction, switch back to the old plan today , inform your users, open up your books and work out a plan together with your users. I know that that may be very difficult for you at this point but you are literally killing the chargify brand with how you go about this. Go back to where you were 24 hours ago, then make very careful moves forward in concert with your userbase. You…

Thank you for the feedback and you are right that the pricing does not work for someone with only 4 customers. Keep in mind that starting a business has costs, even opening a bank account and collecting money is pretty core to this so we do not expect this to be a free service.

We made many mistakes with the implementation and communication with this but do not feel that the $39 plan made this worse. We always listen to our customers and have done this for 7 years at Grasshopper and have gone through both price decreases and increases. We will continue to listen to and work with our dedicated customers and passionate Hacker News followers.

Re: Chargify New Pricing

#140
post #114

My name is David Hauser (@dh) and I am a founder at Chargify as well as the Grasshopper Group where I have spent the last 7 years serving hundreds of thousands of entrepreneurs and helping them to succeed. I want to respond directly here and invite anyone to reach out to me personally on Twitter or email to talk about this or anything else. We made a mistake with how we implemented and communicated a massive price in…

Firstly, thanks for the change of plan. But don't think you're off the hook that easily! :P I understand the need to ditch free users. It's a common tale that supporting free users is just not worth the effort. But realistically, dropping a bomb like this on the many customers you already have which are either "only just" paying or "about to pay" is just plain horrible. Startups who are just ticking over to the base…

Very thoughtful response and love the passion. We are in a very limited segment of Chargify customers that actually have many freeium customers and we would love to work with you to make sure pricing works for you.

There is much talk about freemium but over 12 months of data show that companies actually doing this that are using are system are under 2% of our customers. Feel free to email me, send me a twitter message, anything you want and we will figure out something that will work for you.

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