Economies of Scale and $5 OnTime Express

Economies of Scale and $5 OnTime Express

You know when you buy a book from and they want to charge you $10 for shipping and you think “damn, that’s a lot of money for shipping”? Well, today, I ordered some books from a local bookstore that gave me the option to pick up my books at the store or they could ship them to me for $10. The store is about a 20 minute drive from me, so my first thought was, “Ship it!” $10 is soooooooo cheap! Not worth my time to get into my car, waste a bunch of gas and an hour of my time for the round-trip to pickup a few books and save $10.

Then it occurred to me the amount of work that goes into having those books shipped. First, a FedEx truck is sent to the bookstore to pickup my books. Then the truck takes it to a warehouse where it’s then sorted and sent via another truck to another warehouse that’s closer to my location. From there, a 3rd truck then takes it and delivers it right to my door. All of this happens while a computer tracks the location of my books and sends me email notifications of major updates and a delivery notice. They do this for just $10 and somehow manage to make enough money to pay for fuel, warehouses, equipment, computers, internet connectivity and the salaries of everybody involved.

Damn, that’s pretty good.

What’s funny is that when I placed orders from Amazon, the same things were happening, but I never thought about it before. It’s weird that ordering from a local bookstore triggered my “bargain” receptors. In fact, when I order from Amazon the items are generally shipped from Washington, which means the process is even more complicated and requires two or three additional truck trips and most likely at least one or two flights to get the books to me.

That’s economies of scale at work and it has absolutely nothing to do with OnTime or the rest of this article. I just thought it was a cool story.

Anyways, with the slumping global economy, we realize that a lot of software development teams might be tightening their belts and might not have enough budget for tools this year. So with the release of OnTime 2009, we have decided to re-price OnTime 2009 Express edition in the following ways:

  • OnTime 2009 Express for 5-Users: $395 Now Just $5!
  • OnTime 2009 Express Unlimited Users: $2,995 Now Just $995!

The 5-User edition of OnTime Express is practically free! So you might ask, “why not just free?” It’s because we want you to have a tiny bit of skin in the game. When people pay for something, even if the amount paid is nominal, they feel a sense of ownership and commitment. Free means throw-away. If we gave it to you for free, you might let it sit there in your downloads folder and never use it. 60% of our free single-user activation keys never get activated! Paying $5 means you’ll probably be more likely to actually take the time to install and use the product.

In all honesty, the $5 per sale doesn’t even pay for the processing costs of the sale (a human creates an invoice, prints receipts, emails you a key, etc.) and we’ll probably donate the proceeds anyways.

Learn more about OnTime Express and the new $5 Price

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