Why did 37 Signal's Basecamp price double unannounced?

by Knowlton Thomas

basecamp37 Signals very quietly doubled their basic entry fee for Basecamp from $24 to a whopping $49/month. There is no explanation offered on the Basecamp or 37 Signals website.

100% is a massive increase, so something is definitely up. Pat Pichette at Mercury Grove offered some theories:

1. They no longer have interest in catering to small businesses. Small businesses are no longer a target.  Their focus is to gain market share in the enterprise market.
2. They are feeling so confident that their software will sell, even with a 100% price increase.
3.Something big is about to happen. An acquisition? 37Signals going public?  

I can’t see the change having anything to do with cost. They can easily scale the number of users without a large increase in cost (unless they are struggling with support issues, and the small accounts are no longer worth the trouble).

Why do you think they doubled the fee?

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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes and author of Tempest Bound. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys hiking, tennis, and martial arts. more

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