Co-founders of 37signals, Jason Fried, and David Heinemeier Hansson, discuss their latest product Once, with a unique pay-once-own-forever model. Topics include pricing strategy, long-term profitability, future plans, risks in product launches, and deciphering the right value for customers.
Transitioning to a buy-once ownership model for software products challenges the conventional subscription approach.
Long-term profitability outweighs short-term gains, emphasizing persistence and strategic perspective for product growth.
Deep dives
Product Umbrella 'Once' Performance Evaluation
The launch of the product 'Once' under the new product umbrella has been successful, selling well over a thousand copies within the initial phase, but sales have slowed down post-launch, a common trend in the industry. The co-founders acknowledge the long-term effort required to maintain and grow the product's presence, emphasizing realistic expectations and continuous promotion and improvement. Amid comparisons to their established SaaS product, Basecamp, they view 'Once' as a new model that requires persistence and dedication to establish itself.
Challenges & Rewards of Innovative Ventures
The co-founders reflect on their history with launching innovative products, highlighting the importance of patience and strategic perspective in gauging success. They draw parallels between the initial struggles of Basecamp's launch and 'Once,' underscoring the significance of allowing new models time to gain traction. By embracing the inherent uncertainties and challenges of breaking away from established norms, they aim to foster a culture of exploration and learning within their business.
Approaching New Product Development & Pricing Strategies
As they venture into developing a new product under the 'Once' initiative, the founders prioritize creating solutions that resonate with their own needs and potentially fill existing market gaps. They acknowledge the flexibility downloadable software offers in adjusting pricing strategies and plan to experiment with different price points and sales tactics. By contemplating pricing perceptions and the value proposition of their offerings, they aim to strike a balance between affordability, perceived value, and market competitiveness.
In this episode of REWORK, host Kimberly Rhodes sits down with the co-founders of 37signals, Jason Fried and David Heinemeier Hansson, to provide an update on their latest product — Campfire, under the Once umbrella — just about one month after its initial launch. Once introduces a new software paradigm where users pay just once and own it forever, departing from the conventional subscription model. The discussion delves into their pricing strategy, their emphasis on long-term profitability over immediate gains, and offers insights into what lies ahead for Once.
Key Takeaways:
00:32 - Initial Reflections: Once, 30 Days In
02:03 - Setting Benchmarks: Unveiling Novel Concepts for Long-Term Success
09:58 - Embracing the Journey: Finding Joy in the Process
13:39 - Looking Forward: The Future Trajectory of Once
15:53 - Taking Risks: Navigating the Gambles of Product Launches
23:24 - Pricing Puzzles: Deciphering the Right Value