> The worst customers I've seen, everywhere I've worked, are the ones being under charged. Totally agree, saw it over and over again. Worst customers are those

> The worst customers I've seen, everywhere I've worked, are the ones being under charged. Totally agree, saw it over and over again. Worst customers are those that get something for free. They are also the most illoyal (not really surprising). I made the following observations across multiple B2B startups: - Paying a high price triggered a behavior à la "we're paying dearly for it, so we better use it properly and frequently", which meant that stickiness (# of seats, hours of daily use) increased. - Down the line, the customers who paid the highest price were the most loyal (in terms of churn & avg. contract period signed during renewal -- often signing for 5 years with a small discount when minimum was 1 year). - Customers paying high prices had less support inquiries. - Customers paying high prices were overall friendlier on the phone (don't have hard evidence for that). Question -- in which direction is the causality working? E.g., when we assume that less support inquiries means that the users are more knowledgeable: - Do high prices overall attract more knowledgeable people? - OR are knowledgeable people better in estimating the true value of a product for their business, and thus are willing to pay a higher price? - OR do knowledgeable people rather work in businesses that have higher margins, and thus are able to afford a higher priced product? It seems for me that charging premium pricing had overall pretty positive effects on all businesses I've been working in.