January 10, 2001
Article

APDI Largo's 10X Rate Hike Takes Clients by Surprise

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SUMMARY: No summary available
APDI Largo, an ASP used by more than a dozen subscription-
based print publishers to manage many aspects of their online
fulfillment and marketing, sent a letter to all clients last
week announcing pricing hikes reportedly up to ten times more
than clients previously paid. One client, who requested to
remain anonymous, said, "I'm angry. This is a complete
surprise, and in violation of their contract with us. I think
they're just doing this because they are running out of cash."

APDI Board Member Tim Baskerville was quick to point out, that
while unexpected, this price increase is the first since Largo
was launched more than two years ago, during which time its
services have substantially expanded and improved. He said,
"One metric should put it in perspective: Two years ago Largo
users received perhaps 10,000 e-mails a month as part of the
"Data Finds You" personalized-push service. Now more than a
half-million e-mails are sent per month--each of them unique,
mapping specific teaser-content to specific users. That takes
more infrastructure to support."

Perhaps the pricing problem is less one of value-for-money,
and more one of corporate communication skills.

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