Posts Tagged ‘Seth Godin’

Change Everything By Changing One Thing

Sunday, January 11th, 2009

As usual, I came across another great post by Seth Godin regarding pricing models.

Netflix revolutionized the movie rental business simply by charging by the month rather than by the rental.

Apple changed the music industry with iTunes by letting me download only the songs I like for just 99 cents each rather than pay for the whole album.

Nokia is changing the music industry once more with their “Comes With Music” phone. It comes with unlimited music downloads from the 4 top labels for a fixed subscription fee rather than me paying for each download.

Adobe is now offering a free online version of Photoshop that lets me do almost everything I can do with the professional full priced version.

In all these examples … changing the pricing model changed everything.

What if EDA companies priced their tools like a subscription? A fixed fee gets you any tool they have as long as you only use one license at a time.

Or pay-per-use? Need to do some regression sims? Just pay for the number of sims you do.

Or what about tiered pricing? Full price for the 1st license and less for each additional license?

Sure, these are pretty whacky ideas for an industry as mature as EDA. But maybe that’s what the industry needs.  Someone to change everything by changing just one thing … their pricing model.

harry the ASIC guy