It’s always great having open conversations, and I am glad you asked this question. I will answer your questions directly as the CEO and be as transparent as possible.
From our initial launch, we’ve always kept our pricing as low as possible. As the new kids on the block who came out against longstanding names such as Quickbase, we’ve always undervalued our pricing in order to compete with the big guys who charge significantly more and usually per user or usage.
But our reality is that we’re not new anymore. We have been providing a unique and powerful platform for over five years now, and as such, we have been investing in developing and improving our product and team continuously for the past several years. We believe that our platform’s features and capabilities make us a leading player in the market, and we must recognize our value accordingly.
Let me assure you that Tadabase is indeed cashflow positive and profitable. However, while this makes us very fortunate and especially in today’s rocky climate, an inside scoop into Tadabase’s behind the scenes that may surprise you is that roughly 80% of our revenue comes from 20% of our customers.
As a result of undervaluing our general pricing tiers over the years, Tadabase is not profitable on roughly 80% of our customers, and in fact, it is our select Enterprise clients who make up for our profitability.
This discrepancy is due to our lower pricing for our general pricing tiers in contrast to the continuously rising costs of database resources and what it costs us to host our customers’ applications.
And as you may have noticed, we are not a company that likes to take it easy. It would be easier and more profitable for us to simply host your applications and leave it at that, but as you can tell, we are constantly improving, innovating, and investing in our own resources to help our customers get the most value they can out of their applications. As Tadabase has grown, our customers’ apps have grown, and so has their usage and resource needs.
Over the years, we have offset this profit discrepancy with our successful Enterprise plans (our Enterprise services currently range from 5k to over 20k a month depending on company size and database requirements), and our select Enterprise customers make up for the bulk of our revenue and have allowed us to remain profitable despite our lack of profitability across our general customers.
Needless to say, this is not an ideal business model for long term sustainability.
We have proven ourselves to be a leading player in the database marketplace over the past several years and it is more than time for us to become profitable across all our customers, not just 20%.
Our carefully thought out decision to increase our pricing will help us bridge the profitability gap among our customers and will help increase our sustainability in this volatile marketplace. As a company, it is obviously imperative for us to ensure our long term sustainability, and it is also imperative for the customers we serve that we take the necessary steps to ensure Tadabase’s sustainability and ability to continue providing the best possible platform that meets our customers’ growing needs.
To answer your question regarding Tadabase’s sustainability, it is because we have every intention of remaining a leading platform and continuing to provide the best platform to run your businesses that we have made this necessary decision to change our pricing and increase our sustainability.
With all that said, I recognize that price increases are never easy, and I’m aware that some of you may be concerned about how these changes will impact your business. However, I want to assure you that Tadabase is more committed than ever to providing the best value for your investment. I assure you that you will see these pricing changes reflected in our investment in improving our product and services, ensuring that Tadabase will be providing the best platform for your business for many many years to come.
To answer your question, we don’t have intention of changing your current pricing and apps on the per app plan are grandfathered in for the forseeable future. As far as how will we aquire new customers, ironicially, we’ve had an increase in signups since we chnaged the prices. We aim to bring tremendous value and I’ve seen partners of ours building out an app for as much as $460K on the Tadabase platform. I understand not everyone will understand this value.
I want to thank you for your continued support, and I’m confident that these changes will be beneficial for all parties involved. I truly appreciate your investment in Tadabase as well as your valid inquiry into Tadabase’s future. Please do not hesitate to reach out to me with any further questions or concerns.