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This pricing model sounds to me like "the user is always punished." You bought XGB this month. You didn't use it all? Ooops, you overpaid. Punished. You used
by billybob 15y ago
This pricing model sounds to me like "the user is always punished."
You bought XGB this month. You didn't use it all? Ooops, you overpaid. Punished.
You used more? Ooops, you pay a higher rate for the overage. Punished.
How about we treat this like any other commodity and I get exactly what I pay for?
- jerf 15y agojpadkins: "It has been shown over and over again that consumers prefer fixed price, even if they have to pay more to get it." It is pretty well established. Where your model deviates from reality is in not accounting for the mental costs associated with having to (/wanting to) track how much bandwidth you've used on a minute-by-minute basis... how much is that Netflix movie costing me? How much is this Youtube video costing me? etc etc You can argue about how irrational this is. You can even be objectively correct. And it won't matter very much. Even objectively, you do need to worry about some fixed costs too. A package deal for the first X GBs might now be as irrational as you initially think.
- matwood 15y agoNot necessarily. Even services that appear to be variably priced like utilities have some base cost on every bill. It's basically the cost have the service available even if you didn't happen to use it.