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I've thought about this for our product and I've made a different conclusion. Our service is combination of hardware and software and in the initial phase we wo
by saberdancer 7y ago
I've thought about this for our product and I've made a different conclusion. Our service is combination of hardware and software and in the initial phase we would set things up. We've decided to go with a bucket based pricing because we wanted to remove the temptation to try and reduce your total cost by turning off hardware which is used less often.
When you can reduce your bill by sending 1 less SMS, you get an incentive to do so. If you are sending 2500 SMS, you cannot really scale down to 1000 in a meaningful way. On the other hand, having opportunity to grow to 5000 SMS a day without cost increase give the company opportunity to test out various ideas which may or may not bring revenue.
All pricing strategies have pros and cons and it is up to each to determine what fits them the best.