> As anyone who has tried to buy a CRM will know, these prices are crazy low. Which is a good thing!
No, no it's not. CRM is incredibly valuable to any business and if your software provider can't sustain it's own businesses because they charge too little, the last thing you want to deal with is switching costs (direct costs and hassle) when they go under.
You're right about the switching costs if an SaaS provider goes under. But assuming $50/month is unsustainable for the feature set and service guarantees this company provides seems, well, to assume a lot. If they were trying to provide features competitive with Salesforce, maybe, but are they? (And can we really be sure that Salesforce would collapse if they weren't charging $150/user/mo for their "most popular" plan?)
Even if you are able to get 1,000 customers at $50/month, that's only $50k/month or $600k/year. That's barely enough to provide enough support personnel and hosting costs alone to support 1k clients.
1. up to 10 users: $49/mo
2. 11–25 users: $99/mo
3. 26–100 users: $199/mo
4. 101+ users: call me
EDIT:
As anyone who has tried to buy a CRM will know, these prices are crazy low. Which is a good thing!