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I think everyone is missing a key possible outcome here (regarding the startup business model). Tantalising users for a services via cheap prices can actually m
by Jommi 6y ago
I think everyone is missing a key possible outcome here (regarding the startup business model). Tantalising users for a services via cheap prices can actually mean users change their behaviour and preferences.
This can then mean that when prices are increased, the changed preferences will affect how users perceive the value for the service. Suddenly they might be willing to buy it at the higher price.
- fossuser 6y agoI’m not sure it’s being missed - that’s the explanation used by both good companies and stupid companies to raise the money. The problem is some VCs can’t tell the difference.
- Jommi 6y agoIt feels like it's being missed to me. It rarely gets mentioned as a possible outcome. Usually in media the writing just seems to echo something like "stupid startup thinks reducing prices will help grow a sustainable business", when it's a lot more complex than that.