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I disagree. People who are paying $5/month have a much lower threshold before they leave than an enterprise paying $20,000/month. Also larger more expensive s
by modoc 14y ago
I disagree. People who are paying $5/month have a much lower threshold before they leave than an enterprise paying $20,000/month. Also larger more expensive services tend to end up with more business integration and the cost of moving to another service is typically substantial.
- mseebach 14y agoThey do, but in $20,000 there are 4,000 individual lower thresholds. It's much, much less likely that any one event will cause all of them to quit - all other things being equal, which they never are, so with a grain of salt and all that.
- wensing 14y ago+1. Also, consider setting a price that cuts out the vast majority of demanding cheapskates but keeps it salient for the rest. $200 is a good starting place. You can also achieve this by charging for the entire year up front instead of monthly billing.