Analysis of potential impacts from price changes to Timesheets by Tempo - Jira Time Tracking
Timesheets by Tempo is one of the leading time tracking applications in the Atlassian Marketplace with over 29,000 installations and generating approximately $6.1 million in monthly revenue. This analysis examines the potential impacts of price changes on revenue, market share, and customer satisfaction.
Our analysis indicates that Tempo Timesheets operates in a competitive market with moderate price elasticity. Small price increases (up to 10%) could potentially increase revenue despite some customer loss, while larger increases risk significant market share erosion. Price decreases could expand market share but may not increase overall revenue due to the product's established position and relatively inelastic demand at current price points.
Current standing in the Atlassian Marketplace
Tempo Software dominates the time tracking category with multiple products, collectively holding approximately 30% of the market share. Timesheets by Tempo alone accounts for 13.5% of installations in this category.
Analysis of Tempo Timesheets' pricing model
| Users | Price per User (USD) | Total Monthly Cost (USD) |
|---|---|---|
| 10 | $10.00 | $100.00 |
| 100 | $5.21 | $521.00 |
| 250 | $3.66 | $915.00 |
| 1,000 | $1.81 | $1,810.00 |
| 2,500 | $1.01 | $2,525.00 |
| 5,000 | $0.58 | $2,900.00 |
| 10,000 | $0.33 | $3,300.00 |
| 20,000+ | $0.25 | $5,000.00+ |
| Users | Annual Price (USD) | Price per User (USD) |
|---|---|---|
| 10 | $100.00 | $10.00 |
| 100 | $5,210.00 | $52.10 |
| 500 | $15,225.00 | $30.45 |
| 1,000 | $24,275.00 | $24.28 |
| 2,500 | $39,425.00 | $15.77 |
| 5,000 | $53,925.00 | $10.79 |
| 10,000 | $71,925.00 | $7.19 |
| 20,000 | $100,925.00 | $5.05 |
| Users | Annual Price (USD) | Price per User (USD) |
|---|---|---|
| 10 | $100.00 | $10.00 |
| 25 | $1,150.00 | $46.00 |
| 50 | $3,500.00 | $70.00 |
| 100 | $7,000.00 | $70.00 |
| 250 | $14,000.00 | $56.00 |
| 500 | $23,000.00 | $46.00 |
| 2,000 | $30,000.00 | $15.00 |
| 10,000 | $48,000.00 | $4.80 |
| Unlimited | $100,000.00 | N/A |
| Users | Annual Price (USD) | Price per User (USD) |
|---|---|---|
| 50 | $2,280.00 | $45.60 |
| 100 | $4,561.00 | $45.61 |
| 500 | $14,985.00 | $29.97 |
| 1,000 | $23,448.00 | $23.45 |
| 5,000 | $41,377.00 | $8.28 |
| 10,000 | $59,929.00 | $5.99 |
| 20,000 | $77,056.00 | $3.85 |
| 50,000 | $94,185.00 | $1.88 |
| Unlimited | $166,400.00 | N/A |
Tempo Timesheets employs a tiered pricing model that scales based on user count across all hosting options (Cloud, Server, and Data Center). The pricing is competitive, particularly for larger organizations, with significant volume discounts that encourage enterprise adoption. Compared to industry averages, Tempo Timesheets offers slightly lower per-user pricing, especially in the mid-market (100-1000 users) segment.
Revenue and installation trends
The data reveals several important trends:
Based on reviews and feedback
Total Cloud Reviews: 612 | Average Rating: 4.0
Total Data Center Reviews: 53 | Average Rating: 3.8
Total Server Reviews: 212 | Average Rating: 4.0
Analysis of customer reviews reveals several key insights:
Impact of price changes on demand and revenue
Based on historical data and market analysis, we've modeled the potential impact of price changes on installations and revenue. The analysis suggests:
Evaluation of different pricing strategies
Description: Implement a 10% price increase across all tiers and hosting options.
Projected Outcomes:
Risk Assessment: Medium risk. While this approach could increase short-term revenue, it risks accelerating the existing installation decline trend and could create opportunities for competitors to gain market share.
Description: Implement targeted price adjustments: increase prices for enterprise tiers (1000+ users) by 15%, maintain mid-market prices (100-999 users), and reduce small business prices (10-99 users) by 5%.
Projected Outcomes:
Risk Assessment: Low risk. This approach balances revenue optimization with market share protection by focusing increases on less price-sensitive enterprise customers while improving competitiveness in the more price-sensitive small business segment.
Description: Implement a 10% price decrease across all tiers and hosting options.
Projected Outcomes:
Risk Assessment: High risk. While this approach would likely increase market share and improve customer sentiment, the revenue impact would be negative. Additionally, it could trigger competitive responses and price wars in the category.
Description: Restructure pricing to a feature-based tiered model (Basic, Professional, Enterprise) rather than purely user-count based, with an average effective price increase of 5%.
Projected Outcomes:
Risk Assessment: Medium risk. This approach represents a significant change to the pricing model and would require substantial customer education. Implementation complexity is high, but it offers the potential for better alignment with customer value perception.
How competitors might react to Tempo's price changes
Any significant price change by Tempo Timesheets would likely trigger responses from competitors in the time tracking category:
| Competitor | Likely Response to Tempo Price Increase | Likely Response to Tempo Price Decrease |
|---|---|---|
| Jira Cloud for Excel (Atlassian) | Maintain current pricing; emphasize native integration | Unlikely to match; may enhance features |
| Tempo Core (Tempo Software) | Aligned price adjustment; bundle offerings | Aligned price adjustment; bundle offerings |
| Timesheet Tracking (Cappsule) | Maintain pricing; target dissatisfied Tempo customers | Selective price matching; feature enhancement |
| Clockify | Aggressive marketing; emphasize value proposition | Potential price matching; feature enhancement |
| Worklogs (SolDevelo) | Targeted promotions to Tempo customers | Selective price matching in key segments |
Several factors increase the risk of competitive responses:
Based on our analysis, we recommend implementing Scenario 2: Selective Tier Price Adjustments. This approach offers the best balance of revenue optimization and market share protection by:
This strategy is projected to increase monthly revenue by approximately 4.9% while minimizing customer loss and potentially increasing market share in the small business segment.
Beyond this immediate adjustment, we recommend exploring a gradual transition toward value-based pricing (Scenario 4) over the next 12-18 months. This would involve:
This longer-term approach would better align pricing with customer value perception and potentially create opportunities for upselling and cross-selling within the Tempo product ecosystem.