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One thing I enjoy about charging more is the retention rate, it might be counter intuitive, but if you have a product worth keeping people will pay for it. Thos
by citilife 9y ago
One thing I enjoy about charging more is the retention rate, it might be counter intuitive, but if you have a product worth keeping people will pay for it. Those customers will likely stay on longer, wont complain (as you pointed out), etc.
When you go for the lower price point, you're getting people less in your niche and thus want more bang for their buck, or really want a different product entirely.
- cronjobma 9y agoThis. I once ran a SaaS for $7/mo. Churn rate was horrible. People never stayed longer than 3mo. Now I do something with a 4 figure / mo price tag and people stick around for 7/mo on avg. it’s totally counterintuitive
- nikanj 9y ago4 figures per month I need to justify to my boss. After that, cutting the service means admitting I was wrong. You’d be surprised to learn how much someone else’s money people are willing to burn, to save face.
- disiplus 9y agothat's true but also it depends on the customer is it b2b or b2c, something for 7$ could be something trivial, like a premium package for a note taking app, but something like a 1000$ is probably a b2b that the company needs.
- stedaniels 9y agoWhat do you do now?