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$50 seems like the better plan to me. Ofcourse, if I ask the users who haven't subscribed and still use the free model, they think $50 is too much and they woul
by byoung2 16y ago
$50 seems like the better plan to me. Ofcourse, if I ask the users who haven't subscribed and still use the free model, they think $50 is too much and they would be more likely to pay $20
Of course they would rather pay less! But you also have to consider that when people start paying, they usually expect a higher level of service. If you can keep the number of people with high expectations to a minimum and still turn a profit, you'll be in better shape.
Start with the higher price, and see how it goes. If you aren't getting enough customers, you can always offer limited-time discounts (e.g. "Regularly $50/yr, but sign up during December and get your account at $40/yr for life!").
- WadeWilliams 16y agowicked good idea on the limited time discount. Thanks.
- tptacek 16y agoDanger: This has been the polar opposite of Patrick McKenzie's experience. Charge people one shiny nickel and they'll come to you with high expectations. In fact, lowering your prices pessimizes your customer base with the most high-drama customers.
- byoung2 16y agoI meant that when they start paying vs being free customers they start to have expectations. You're right, when they pay less, they seem to expect more. The lower price just attracts that kind of customer. I saw this at Kaplan Test Prep. The most demanding students were the NCLEX students who only paid $400-600, while the USMLE students who paid $6000-10000 never asked for anything.