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Business PlanMatterportMatterport 2019 New Pricing Announcement

Proposal to Matterport for incremental space add-ons between new tiers9417

bryanhscott private msg quote post Address this user
Hello WGAN Members,

The following is an email I just sent to Matterport Support. I am a new MP user and was preparing to launch my new Real Estate Media business at the same time that Matterport launched it's new pricing. Now that my own price sheet requires re-thinking on my 3D tour pricing due to new costs to host MP spaces, I am respectfully requesting they consider enhancing their pricing by offering smaller increments between the new tiers.

Please advise your thoughts.

[Begin email]

Dear Matterport,

I spent months sourcing and researching the best equipment for my needs as I have been planning to enter the Real Estate media business for nearly a year. I took delivery of my first, new Pro2 in late March. Ever since, I have been focused on a zillion different items, including learning how to use this camera, as well as other equipment and software needed to launch my business. Then, on May 9th, with no prior warning, MP decides to "reconfigure" my pricing model by totally changing it's own pricing. Now, I am back to the drawing board, trying to understand how to scale from 1 space to 100's, while not gouging my customers with potentially unreasonable, recurring monthly hosting fees.

To make matters worse, as I had not yet signed up for a paid subscription level when you published your new pricing, I do not have the same choices as your MSP customers who were on board with one of the Classic levels prior to May 9. As such, new Matterport MSPs, including me, find themselves at a competitive disadvantage when you factor in the cost of hosting, which was not an issue when I made the final decision to entrust the 3D Tour side of my business to Matterport.

Starting at your Pro tier (because your Starter tier is basically worthless to my Pro2 and does not offer 2D floorplans) up to 25 spaces, for $69/mo, my cost for hosting per space starts at $69 (1 space) and is reduced to $2.76 when I get to space # 25. This tier is toughest to price for retail, because of the large variance per month per space at 1 vs. 25. As a result, I have pretty much decided that this first tier (Pro) is a throw-away from the standpoint of recouping my expenses. So, I am focusing instead on higher volumes to make it make more sense.

When I graduate to Pro+, at 26 spaces, my cost is $4.96/space/month and when I get to space # 50, my cost is $2.58/space/month.

For your Business tier, I find it difficult, if not impossible to justify paying $3,228 in advance just for the "privilege" of adding space # 51, when I run out of spaces on one Pro+ tier. This issue doubles my perceived difficulty at space # 101. Assuming I would somehow change my mind and pay MP a full year in advance for your Business tier, my cost would be $5.27 per space at space # 51, $3.59 per space at # 75 and $2.69 per space at space # 100. For Business+, at space # 101, my cost per space per month is $5.93, at space # 175, it's $3.42 and at space # 250, it becomes $2.40 per month per space.

Regretfully, as a result of the above, the level of complexity that MP claims they sought to reduce via new pricing has not gone down. As I stare at all the numbers, I am perplexed as to how to dial in pricing that makes sense for my business model, but also makes sense to my future customers and allows me to be competitive. In short, this became a quagmire.

As you can see from above, in order for me to recoup my expenses and possibly even mark up the price for retail consumption by my customers, I need to pick a target in the range of pricing (low to high), across 2 to 3 tiers where I can leave pricing as static as possible as I grow. This task is difficult when the delta is so different from one tier to the next, from minimum spaces to maximum spaces across all tiers.

I am not entering this business as a charity, so my question is whether or not MP is or has considered an interim approach to pricing between the space quantities offered from Pro to Business+, in quantities less than 25, 50, or 150 increments?

In other words, why is there not a level of service that starts at, say, Starter, which allows uploading from the Pro2 and provides optional 2D floorplans, then adds one space at a time at a fair rate per month until such time as the total number of spaces reaches the point at which the MSP "graduates" to the next service level plateau and would MP consider making such changes to be more accommodating to it's MSPs?

Example: Starter costs $9.95 for up to 5 spaces. Why can't you facilitate a per space add-on price for space 6, 15, 22, etc., in increments of 1, all the way to space 25, before you then make me upgrade to Pro at space # 26? Likewise, same situation between Pro and Pro+, etc. If MP would consider implementing such a change, I am confident it can arrive at a per space price point that becomes a fair and equitable compromise between tiers.

Ahead of potential, reasonable enhancements to your new pricing model, can I start with Pro, then add a Starter tier to one account (for a total of up to 30 spaces), which also allows me to upload from my Pro2 and also purchase 2D floorplans? Then, when I need space # 31, I simply add one more Starter? Same question for Pro and Pro+, in terms of adding spaces in 5 space increments, or if needed, add a 2nd Pro account (or one more 25 space increment) to another Pro account, or Pro plus one or more Starter plans? This seems like a fair approach to the problem created by the new pricing model.

Please advise your thoughts on the above. I would appreciate your serious consideration sooner than later so I can put this Pro2 to work with some level of confidence that I can understand my costs, add a fair margin of profit and establish pricing that is fair and easy to understand for everyone involved.

If there will be no further consideration of the above-mentioned, potential solutions and I simply can't make the numbers work, I would respectfully request that MP extend my warranty return period to a week from now and I will simply pack up my new camera and send it back for credit, because had I been duly informed of your [then] upcoming price changes prior to my recent purchase, I may have opted for another solution.

Thanks for your consideration. I look forward to hearing back shortly.

[End email]
Post 1 IP   flag post
North Palm Beach, FL
hometakes private msg quote post Address this user
This is what I would do if you get an unsatisfactory answer from them. I would call them and and tell them what happened and that you think given the circumstances, that they should allow you to pick something from one of the old plans. If they dont agree to that, then I would Demand my money back for the product that wasn't even used yet. They will most likely then quote their 30 day return policy. This is where you will quote that you bought the camera while preparing your business plan based on the hosting plans that they'd had in place since day one and if you had notice of their change in pricing, you would have signed up with a plan before they took the old plans away from new subscribers.

If they still tell you no, then I would call my credit card company and start the charge back process and quote the very same reason and tell them that as a consumer, its unreasonable for them to change pricing without given notice and that you would not have bought the camera based on their new plan pricing. You will win, merchant accounts favor the consumer most of the time. As a merchant account holder, I can tell you that even when I have had documentation that shows that my customer got everything that they paid for and all was agreed to in my terms and conditions, I haven't ever won a charge back case.

I would them purchase a GEOcv camera. Once done, I would post that all over this forum. Matterport gives a lot of lip service, says they care, but dont seem to. Prove us wrong Matterport.... Show us you really do care by offering bryanhscott one of the old plans to choose from.....
Post 2 IP   flag post
bryanhscott private msg quote post Address this user
@hometakes - thanks for the reply comments Colin.

I hope all is good in Boca or the PI, wherever you are at the moment!

I trust that MP will act responsibly. If not, my intention is to pursue it as you mentioned. I too have had good luck pleading my case with the CC issuer in circumstances that warrant it as I believe they do in this case.

Sort of ironic, after just checking the delivery date of the new Pro2 (Apr 16, 2019), I find that I was still within the 30 day window on May 9, but honestly, it took a while just to absorb and re-calc the numbers to arrive where I am at this point (too busy moving my 2 kids back home from college after yr 1 completion, I guess).

Anyhow, we'll see what they come back with. I'd rather stay, assuming there are no other issues that arise, such as being able to pull usable stills out of the MP data, etc.

Talk later,
Post 3 IP   flag post
bryanhscott private msg quote post Address this user
Dear WGAN Member: An update on my particular situation concerning timing of Matterport new pricing roll-out and getting caught without a Classic subscription. Also, a quick update on Incremental Space Add-Ons between new Tiers.

Just off the phone with Dee w/Matterport Support> She was able to get me approved for a "Basic Cloud Plan" subscription. Thanks Dee and whomever above her level who approved it. I appreciate the assistance in this matter. If there are other new Matterport camera owners out there, who got stuck in the middle, I suspect the same courtesy might be extended by just asking.

Regarding any pending changes to new MP pricing just rolled out on May 9, specific to adding the capability of adding spaces in smaller quantities (1 each, or blocks of 5, or ??) between tiers, Dee indicated there is nothing in the works that she is aware of. This is a big disappointment under the circumstances as this sort of enhancement allows MSP and MP to meet closer to the middle and makes it easier on everyone involved, except maybe Matterport. For their part, some might call this "unjust enrichment," whereby the vendor makes more money for not supplying much in return.

I am forced to wonder that if the new pricing was really done for the benefit of the MSP, why don't the MSPs feel that love?
Post 4 IP   flag post
San Francisco
Jwbuckl private msg quote post Address this user
@bryanhscott Thank you for the very thoughtful post and I am pleased Dee got to you. You have some great points above and will make sure to route your feedback to the head of Product Development.
Post 5 IP   flag post
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