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I think your pitch here really just ties back to simplicity in pricing. Simplicity in pricing is a strong customer desire. When your service is so valuable that
by ip26 4y ago
I think your pitch here really just ties back to simplicity in pricing. Simplicity in pricing is a strong customer desire. When your service is so valuable that it’s a no brainer, the pricing is de facto simple; pay the final bill and be done. When the value add is thinner or more uneven, it’s ok, but pricing becomes complex and customer preference will be for simple pricing structures such as all-you-can-eat.
- lpolovets 4y agoSimplicity is definitely part of it! But the value/price alignment piece is also important. Take Hacker News. If they charged $50/mo, I'd pay that. But if HN charged $1 per homepage visit, I'd start visiting a lot less. Maybe once or twice a day, but not 20x/day. Both $50/mo and $1/visit are simple pricing methods, but my value is not the same with each visit given the homepage doesn't change much hour by hour. So maybe it's really worth $5 for the first visit of the day and 25 cents/visit after that, and thus the $1/visit system wouldn't work well (for me).
- JohnFen 4y agoI agree. I avoid usage-based pricing in favor of a flat fee whenever possible because of this. It's very rare that the hassle of having to work out the charges is worth it to me.