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In the current economic climate what do you think is the best way to keep existing customers happy and encourage them to spend more with you?
Introduce some special offers perhaps? Add extra value to your products and services? Be even more nice than you are normally?
All these might be reasonable suggestions and I'm sure there are plenty of others that we can think of too. But I bet you wouldn't have thought about this as a strategy instead...
- Take your finest super-high-margin cash-cow product and add a few features
- Increase your product's pricing way above the rate of inflation
- Make certain that your UK pricing is far higher than in other parts of the world and tell everyone
- Remove all previous incentive pricing discounts for upgrades
- Change the terms of use of your product/service such that it becomes a highly restrictive short-term lease agreement only.
Now, I can tell you are thinking that that all sounds a bit odd really doesn't it. Amazingly however this appears to be precisely what Microsoft have decided to do for their forthcoming Office™ 2010 release due out later this year.
So apart from the new features, just what are they thinking of here? Is this some kind of reverse psychology to make everyone think that they've gone bonkers and so will buy it out of sympathy? I really don't know and, as I have not used Microsoft Office for several years now, I'm not able to comment on how good, or bad, or pointless, any of the new features might be relative to what has gone before.
What I do know however, is this. For virtually every organisation we deal with there is an alternative to Microsoft Office that also comes in a "Professional" edition (it only has one edition) and it doesn't cost me, my business, or our customers a single penny. Using it I can create very nice proposals, letters and other documents, give presentations and make spreadsheets. I can share these with our customers, partners and prospects who are using Microsoft Office or many other applications. I can, with a single click, create PDF versions of my creations that can be read by almost anyone and printed as I intended them to look, rather than how an application thinks I wanted it to.
This product gets a regular and incremental new release roughly every 6 months or so (unlike Microsoft's incidentally, which only gets updated once every three or more years and presents a major learning curve each time) and all upgrades are free too. I can install this software on lots of different computers (actually there is no limit), I can legally, and am actually encouraged to, make copies of it and give to my friends, neighbours and customers, and the same version runs on all sorts of different computing platforms too: like Macs, Ubuntu (Linux), some Unix systems and Windows™ for example.
 I'm sorry. but there are no prizes here for guessing that the product I'm talking about is called OpenOffice.org (the ".org" is part of the name).
Have you ever tried it? If you haven't I strongly recommend that you do. If you want to you can get it from here right now. It is, and always will be, free and is, not unsurprisingly, very popular:
On October 28th 2009, the one hundred millionth person clicked on the Download OpenOffice.org button since version 3.0 of the software was announced just a year before.
Just think about that for a moment. That's 100,000,000 individual downloads of a free product, the alternative legacy application from Microsoft will soon cost you £430. Oh yes, and those 100,000,000 downloads happened in a year and 16 days...
When Microsoft Office was relatively cheap and everyone had it there was little sense in looking elsewhere for an alternative. But now times are very different: money is ultra-tight; a significant proportion of the world, especially public sector organisations and Governments, are using, or are moving to, alternatives based on Open and Free standards; and the main proprietary competitor has just inflated it's pricing by a large margin. This now means that it will cost nearly £450 to upgrade each and every computer in your operation, and that is just for the office applications don't forget.
So surely, this moment in time represents an ideal opportunity to evaluate and plan your migration path away from these legacy, over-priced and over-valued proprietary software applications? Applications which, in reality, are still being packaged and sold as they were ten or fifteen years ago; what is now a bygone era just like the Ford Cortina or Brotherhood of Man.
If you do try OpenOffice.org and have questions, or if you do not feel comfortable downloading and installing software, or perhaps you would prefer someone experienced to come and discuss the differences between applications and even suggest migration strategies for your organisation, then The Open Learning Centre have come up with a special offer for any organisation in the UK. You can read more about it here. Or just contact us directly.
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