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This mentality kills most businesses. Will it help you acquire customers? Maybe. Will it give you low-end, pain-in-the-butt customers whose support burden is
by gacba 15y ago
This mentality kills most businesses. Will it help you acquire customers? Maybe. Will it give you low-end, pain-in-the-butt customers whose support burden is far higher than the value they supply to you? Yep, most likely.
Better for you to actually VALUE your product from the get go, get customers who also value it, and work together to make it better.
Think I'm crazy? Ask Groupon businesses how much repeat business they get from their cheap promos. It's the same problem.
- clark-kent 15y agoI don't mean $1/month as a cheap promo, I'm referring to a situation were the costs of running your SaaS is very low, were you can break even with a few hundred customers a month. And adding new customers doesn't significantly increase your cost. In this case you can afford to charge $1/month and take advantage of the volume. You can provide limited support for basic accounts and charge much more for full support like $5-$9/month. The idea is to give your customers the only-pay-for-what-you-need model which is very realistic on the web. If your cost increases significantly with each new customer you acquire then find what will increase your costs and charge extra for it, maybe bandwidth, computation, disk space etc.