Alibre $99 Pricing Sends Shockwave

Alibre announced that it's MCAD software is now to be selling for $99 (see press release on TenLinks). It is a "limited time offer" but they are being cagey about the length of time. Alibre is claiming it is the full blown software, you will own it forever, no ads, no watermarks, no crippled features. This announcement sent shockwaves through the CAD industry media. It didn't take long for the blogs and tweets to light up. Here is a sampling:

• Alibre Design Standard for $99 - Deelip Menezes
• Alibre Slashes Price by 90% - Kenneth Wong
• $99 for Parametric 3D History Based CAD? Now That’s Negotiating! - Matt Lombard
• $99: Alibre Drives Down the Cost of MCAD (Temporarily) - Ralph Grabowski

It's an obvious move to gain market share. But will it? The simple answer in this economy is that price rules. But it's complicated. Initial cost is not the only expense. The bigger cost is investing time and effort in in learning, adapting, and incorporating software.

For years, I've wondered how AutoCAD could sell for $4,000 when all around it much cheaper alternatives have been available. Many of them free. Obviously, many other factors are in play.

Picture an engineering manager hearing about Alibre's $99 offer. Sure he could buy a license out of petty cash. But will he buy it for the whole department? Hmm... who else is using Alibre, he thinks, but can't think of anyone. What if I can't exchange files with my vendors? What if Alibre can't handle our designs? Does it crash? Will the other CAD managers laugh at me? Maybe I should just stay put... I've got a good job and nobody's going to fire me for using SolidWorks. Maybe I'll keep my head down and this will blow over.

Comments

[Josh McBogan]

Alibre Design keeps crashing on me. I am trying the free trial and it seems unstable (Win XP, all requirements) and it encounters fatal errors every few operations. Once it closed without any warning. Aside from that, I can't find how to make a cone. I thought AutoCAD was a slow way to do 3D but this is a step backwards.

[Dan]

I worked for Alibre for a few years (2005-2007) and I can tell you this is a genius move. It obviously ended up working out for them, every made a killing when the price dropped. Sales reps turned into order takers, phones blew up all day.

[Murray]

I work for a small 12 person business that currently enjoys the power and cost savings of Alibre Design Expert with full maintenance. We have been using Alibre since 2006 to design optical devices and system assemblies. We purchased the Expert version primarily to get the sheet metal features but most of what we use is available in the standard version. Recently we have started to make use of the 2.5D CAM capabilities also included in the Expert version. We will be getting a second seat using this special offer.

[Max Freeman]

Mark J,

I respect your right to have an opinion. But, if you are trying to imply that SketchUp is in any way a mechanical design solution then your credibility is nonexistent. Alibre Design clearly isn't for you, nor is any of our competition that focuses on mechanical design.

And feel free to be as specific as possible about the "vast limitations" you found inside of two minutes. Or at all for that matter. This I have to hear.

Also, the cool thing about Walmart in one example:

Sony - KDL-40S5100 - 40" LCD TV - 1080p

Walmart - $797
Target - $899
Best Buy - $899
Dell - $899
Newegg.com - $899
Sears - $899

Do you see a trend? Looks like the same TV to me. Go ahead and go to Best Buy, I'm going to Wally World.

Max Freeman
Alibre, Inc.

[Mark J]

Perhaps if Alibre wasnt a Wal-Mart level CAD system it would be a deal. As far as Im concerned as a professional CAD user, Google Sketch-Up is a better deal for a comparable CAD package, and it's free. This announcement may have sent shockwaves thru the ranks of analysts, but none of them use CAD for a living so they don't understand the difference between a real CAD system, and something on the level of Alibre. This is a non-issue for real CAD users because it takes about two minutes of using Alibre to discover its vast amounts of limitations. If you ask me its a desperate attempt by a dying company who can't compete with the real stuff out there.

[Max Freeman]

Surely there will be questions. Our website goes into full detail on all of these issues, and presumably said engineering manager will do his due diligence in evaluating the deal and what it can offer. Alibre Design isn't for everyone or every business - but it does 100% of what a very large number of businesses require, and for an unbeatable price. Whether or not our product is right for the manager's business is for him to decide, and we welcome the evaluation.

Max Freeman
Alibre, Inc.