Transparency = Good
Tuesday, May 18, 2010 at 9:28AM 
I got an email this morning from a small company that we use and I have to say, I'm happy about it.
We use ZenDesk for a number of groups at work to track what and how we're doing when it comes to small projects and we find the tool immensly helpful. It ties in with Active Directory for single sign on and it sends email alerts to all the parties involved to keep them updated on what's going on.
I'm obviously not thrilled with the hike in price (no one really would be) but I am thrilled that they were so transparent about this change. The email was concise and the reasoning behind the price jump was made abundantly clear. They even linked off to both their TOS (something Facebook might want to think about more often) and a quick FAQ.
Finally, they did two things that others need to learn to do. They let me down gracefully and they shared their contact information right there in the email. They weren't looking for user feedback as to whether or not the price should go up, they simply offered a way to slow down that jump while getting more customers to lock into the product. It's both smart and friendly and that makes me a happy customer.
So for all of that, I say: Thank you ZenDesk.
Reader Comments (4)
A SaaS price hike of 100-300% with less than 2 months notice is a bit like being held to ransom. There are cases of people hit with 300% increases which they say are costing them $2,300+.
These people didn't ask for a 300% increase for a few forum features they don't want.
I believe in one horrific case they are facing an $11,000 increase.
Rob,
I totally understand the concern and angst but I think the other way of looking at would be to ask what would it have cost said company to build their own system as stable and user-friendly as ZenDesk? There are other options out there besides ZenDesk but I believe that they have a great product and I don't believe it's too out of the question for the rates to go up as the product's value increases (even if you aren't going to use those features).
I do believe that a better way of grandfathering in might be smarter. Maybe something like: If you keep the same place with the same number of agents you can stay on this for two years (without pre-paying) but if you change anything in your plan you're signing a new contract (like the cell phone companies used to do).
-Jesse
I guess that's one way of looking at it.
The other way is 'we're gonna increased out prices by a ridiculous margin, but if we write a nice personal letter form the CEO maybe some people will fall for it'
Hook, line and sinker, Jesse
Michael,
That could be the way they're looking at it but I have spoken with most of their employees at one point or another (as I mentioned we use them quite extensively) and they seem like genuine people. I truly believe that they are working their product and are now realizing that they should/could be charging a bit more for it (especially while they continuously improve). I still don't believe the price is outrageous for the services that they provide. But everyone obviously has a different view of what is appropriate. We'll see what type of backlash they get or not.