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Providing "unlimited" is a major competitive advantage. The hard part is predicting the average cost per customer. One can use historical metrics to help. The f

Providing "unlimited" is a major competitive advantage. The hard part is predicting the average cost per customer. One can use historical metrics to help. The final price would then be set according to the average cost, taking into account profit + padding for outliers.

telecuda 4y ago
I’m not suggesting it’s easy, but the trick is to play with pricing a lot in your early days while learning what those costs are. Start a little higher than you think you need - it’s easier to adjust down later than go up. Outliers can be caught with a small amount of code (hey, Slack me if a customer who I thought would use this thing once a day uses it 20 times so I can reach out to them to learn more about how they’re using my product).
- truetraveller 4y ago
  Question: would you then put Unlimited* with an asterisk: "unlimited within reasonable bounds"? I would feel it unethical to claim unlimited as a blanket statement.
  - AnhTho_FR 4y ago
    We have seen it into the form of « fair usage ». Although I understand it from a merchant’s perceptive, I have not seen it well received by end users… yet.
  - telecuda 4y ago
    Yes, as AnhTho_FR said, some * notating “fair usage” or “unlimited for advertised use-cases” gives you a fallback in the event of a dispute. It ultimately depends on what you’re selling and who your customers are. If a customer is legitimately consuming way more than planned - so much that it’s not compensated by other customers who use it way less - then just reach out to them and talk person-to-person about why they love your product, what it accomplishes for them, and your situation on cost. A genuine customer will welcome that feedback. A customer trying to game your unlimited system should can be unwelcomed for renewal - you can fire a customer if need be!
    - hdhrufjdi 4y ago
      Unlimited except when it is too much is not unlimited. Just set a limit then instead and don't market it as unlimited.

telecuda 4y ago

I’m not suggesting it’s easy, but the trick is to play with pricing a lot in your early days while learning what those costs are. Start a little higher than you think you need - it’s easier to adjust down later than go up. Outliers can be caught with a small amount of code (hey, Slack me if a customer who I thought would use this thing once a day uses it 20 times so I can reach out to them to learn more about how they’re using my product).

truetraveller 4y ago
Question: would you then put Unlimited* with an asterisk: "unlimited within reasonable bounds"? I would feel it unethical to claim unlimited as a blanket statement.
- AnhTho_FR 4y ago
  We have seen it into the form of « fair usage ». Although I understand it from a merchant’s perceptive, I have not seen it well received by end users… yet.
- telecuda 4y ago
  Yes, as AnhTho_FR said, some * notating “fair usage” or “unlimited for advertised use-cases” gives you a fallback in the event of a dispute. It ultimately depends on what you’re selling and who your customers are. If a customer is legitimately consuming way more than planned - so much that it’s not compensated by other customers who use it way less - then just reach out to them and talk person-to-person about why they love your product, what it accomplishes for them, and your situation on cost. A genuine customer will welcome that feedback. A customer trying to game your unlimited system should can be unwelcomed for renewal - you can fire a customer if need be!
  - hdhrufjdi 4y ago
    Unlimited except when it is too much is not unlimited. Just set a limit then instead and don't market it as unlimited.