It makes me wonder: When demand is THIS intense for a 75% off sale, you think it'd mean a more optimal "normal" price point would be at 25-50% off your current normal prices, wouldn't you?
So anyone who's - for example - still using ReSharper 6 will probably leap at this opportunity to finally get fixes for critical bugs in the product. Normally you'd have to pay $100 or more to upgrade just for bug fixes; now it's a rather more reasonable $30 or so.
If the demand for this offer is so intense their servers melt down for hours on end it seems this is pointing to a huge opportunity the rest of the year to reach all those who think 4x the current sales price (whether for the full version or the update) is "unreasonable".
One data point would be myself: as a single developer, spending 100€ on AppCode never felt "reasonable" considering XCode was free. 25€ is an instabuy of course - so it seems to me the "sweet spot" is more around 50-60€ where they'd reach far more than twice as many customers than at 100€...
Flash sales like this are used to maximum revenue. They earn full price most of the year and do flash sales to get everyone that doesn't want to pay full price to pay something.
Coupons work the same way. If your price sensitive you'll spend the time to clip coupons and get the better deal. If you're less price sensitive, you won't "waste your time" with coupons and will pay full time. Sales and profits increase for the company.
For example I bought AppCode and PyCharm today instead of waiting until Q1 of next year like I originally planned.
There are definitely a good number of people that might not consider the full price worth it, but that's why JetBrains has occasional sales around holidays, back to school, etc.
The fact that the servers are going down and people are excited by the offer also means that we will feel left out if we do not do what our fellow humans have validated as a good choice.
If they offered the product at a cheaper price normally, they are devaluing the product, which is not what they want to do. This is a $100 product for $25, not a $50 product for $50.
75% off for your product should create a much larger sales revenue, but within a certain factor. Beyond that just shows that most of your potential customers view your software as being heavily overpriced.
If you've got a great product and there's no competition on par in the market, you can charge what ever you like and people will pay (photoshop, maya, resharper, etc).
A sale like this just spikes interest and no doubt drives a lot of chatter which will pull other full price paying customers to the site to buy more stuff.
As a company with shareholders, can you really justify throwing away profits by cutting your prices permanently by 75%?
For this to be a reasonable proposition you need 4x your current customer base that you can prove wont buy your product unless you slash the price.
You'd probably see some rise in volumes, but 500%?
O_o I"m dubious.
(I've always thought the Jetbrains stuff was quite modestly priced; compared to say, Xamarin's offerings)
I've been using IntelliJ since version 4 or so and before the free/community edition and commercial edition divide I have to admit I was poor and did use the crack. Then came the free version and I could use IntelliJ without being a pirate and without buying it.
The commercial version has a few niceties (code coverage, dependency structure matrix, better JavaScript support etc.) that I was missing but I wasn't exactly willing to pay 200 Euros for these yet: not that I didn't have the money but more out of lazyness and thinking "bah, I don't really need these, 200 Euros for that is a bit steep".
Now at 47 Euros I'm falling for it.
That's it: after nearly ten years of using IntelliJ (including both years and years using the free version and years and years using cracked version), I'm eventually buying it.
So I don't think it's just appealing to people who've never used it and think: "hey, that's x/4 instead of x, let's buy this thing, it's a bargain" in the same way that women loves "sales".
I think there are quite some people who've always been wanting the additional features but weren't quite willing to put 200 Euros for it.
Plus there's the doomsday thinggy: it's going to be cool to remember that that one software I bought it on what was supposed to be the last day on earth ; )
“I'm mainly doing Ruby. Do I want RubyMine? IntelliJ IDEA supports all the Ruby stuff plus other languages too right? Argh, this is complicated. Maybe I'll take another look later if I think I really want/need this.”
to
“Hey 75% off. I think I'll just grab both. Maybe even collect all 6!”
For example, Steam sales. When I see a game that is interesting I will think "cool, but I should finish all of the games I'm currently playing first". If I have 24 hours hours to get it at half price it feels like I am actually saving money in the long run even if I don't play it straight away.
Whether it was worth the initial price or not is almost irrelevant. I imagine if they set their prices to 25% permanently there would still be high demand if they did a further 25% sale.
Considering the awesome support, level of polish and massive value provided by the JetBrains team, their products are actually pretty cheap.
I guess that a lot of people are just exercising their options regardless of actual need for the product.
For me PyCharm has paid itself many times over. Keep up the good work JetBrains!