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No. of Recommendations: 6
I say when average price per seat is under $10, if you make that $11 or $12 no one will cancel, especially now with they’re Connect feature is wrapping up everyone whose using Slack, albeit more or less for each customer, with the Strong’ Network Effect

It's not just about raising their price a few dollars because their pricing is a magnitude off of where it needs to be.

From the Slack website it's $12.50 per seat/month if billed annually, and $15 if billed monthly.

For example, let's take a 100 person company. We get 100 * 12.5 * 12 = $15,000. That's extremely cheap for enterprise software which is critical. The same company may easily paying 200k per year for an Amazon bill, 100k for a HubSpot subscription, and 100k for Tableau.

Also consider how much data is going through Slack's systems for just $15,000. You have every message, every file, and free phone calls. It's why they are consistently not making money.

Yes, they are product focused but their pricing is off and they neglect sales. Could have just as easily been in product focused companies such as CrowdStrike, Zoom, or Cloudflare which are also sales/price focused. The difference is they understand they are running a business and not a charity. Slack is the only SaaS company I know which is giving "concessions" every quarter. Other companies are have delayed billings for companies impacted by covid, but not concessions.

Lastly, consider I've been holding since the IPO of a $38 price and the company is at $25 now. Would have done much better allocating the money elsewhere.
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