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Sounds like you've identified the "offenders", could you just reach out and ask them why they're doing this? Obviously do so in a way that you're not threatenin
by conductr 9y ago
Sounds like you've identified the "offenders", could you just reach out and ask them why they're doing this? Obviously do so in a way that you're not threatening them (discontinue service) or accusing them of cheating (they may not be doing it on purpose). Do this and I'm sure you will hear some common themes. Then you will have the right data to adjust your pricing model, or not - you might just conclude that it's worth leaving the pricing model alone because of the value of the users to adhere correctly, and just allow some level of users to abuse it - because they might not/would not pay full price (I'm assuming you're margins still allow you to make money on these users).
I personally have see what you're talking about. And, I'm not a big fan of per-user pricing as a consumer. Because it creates silos where only Bill can login to get that info... But Bill's on vacation today... do we need to pay for another seat all year long just so we have a backup plan for when Bill is on vacation. So with that, my guess is they don't feel it's worth paying full per-user pricing for users that only login periodically. Or, the total price gets higher than they value your service (eg. I don't mind paying $100/m for your thing, but I have a team of 20 and your $19/user pricing doesn't jive with the value I think your product delivers, so I might be inclined to find a way around it). It might also be that most of the users are casual users and they only have one power user. You might need to consider creating different user classifications with pricing that reflects (eg. admin = $100/m, generic = $10/m); but this will complicate your product not just your pricing model.
I don't know anything about your product. But, consider fixed pricing / annual pricing. People fundamentally think about these differently. Selling a solution for $1200 for the year may be easier than $100 per month. Also if it suits your business, you could set pricing based on volume usage. More users probably correlate to more volume of use and it will remain revenue friendly. In this way, it become more "fair" for the companies who have 1 seat but use the product heavily.
Not sure anyone can really answer this for you but I hope this helps give you some ideas!