3 ms·
Its difficult to quantify a best strategy as there a many more variables at play than just what the customers can afford. There is usually a "sweet spot" for ev
by Atlas22 4y ago
Its difficult to quantify a best strategy as there a many more variables at play than just what the customers can afford. There is usually a "sweet spot" for every type of customer that is a careful balance between price and amount of customers that maximizes profit. I'm doubtful that this price change will motivate more than 34% (1 - $19/$29) of their customer base to move elsewhere that would negate extra profits from price hike. Mostly due to the time required for customers to move elsewhere and the sunk investment of moving onto gitlab in the first place (a form of vendor lock in). There are also likely savings in other areas such as support that roughly scale with number of customers like sverhagen suggested.
From a financial perspective, it seems likely that gitlab will profit from this change. They may be able to profit more and mitigate hobbyist/very small business business loss by introducing another tier but gitlab is the only one that has enough information to determine if that is worthwhile from their perspective.