6 ms·

I wouldn't be surprised if he 2x his price and wouldn’t have much churn. Increasing your pricing is the #1 way to grow revenue and weed out customers who abus

I wouldn't be surprised if he 2x his price and wouldn’t have much churn. Increasing your pricing is the #1 way to grow revenue and weed out customers who abuse customer support. https://healthchecks.io/pricing/ https://healthchecks.io/pricing/ With that being said, he clearly knows what he’s doing - don’t take advice from strangers :)

guywithahat 2y ago
Although I don’t disagree, the conception of the company was he found an industry and decided to undercut it. Raising prices might be a risk here, since his customers are (presumably) more price conscious
bityard 2y ago
Ah, the Broadcom/VMWare strategy... Small businesses that actually find a market and turn a profit live or die on reputation. I have a feeling that 2x the price (even incrementally over time) would burn a lot of goodwill. But there is a middle ground. As long as your operating costs don't rise precipitously for whatever reason, you can keep your existing customers on their current pricing and give new customers your new higher price. It works in web hosting, anyway. (Usually.)
Aurornis 2y ago
> Increasing your pricing is the #1 way to grow revenue and weed out customers who abuse customer support. Unlikely with businesses like this. This business model is to offer a budget alternative to the big name services that doesn’t have the same level of support and reliability (it admits not having failover, for example) to customers who are okay with that in exchange for the lower price. Once you start raising prices significantly, it no longer becomes the budget option. Customers may not churn right away, but growth would slow substantially as people started comparing to the full-featured mainstream services at similar price points. The common startup wisdom is that raising prices dramatically is a magic wand to improve your customer base and grow your revenue, but that doesn’t work in the budget domain.
- alberth 2y ago
  > This business model is to offer a budget alternative to the big name services Who’s the “big name service” in this space?
  - ashconnor 2y ago
    Pingdom?
    - alberth 2y ago
      Like for like functionality, their pricing seems fairly similar. https://www.pingdom.com/pricing/ https://www.pingdom.com/pricing/ https://healthchecks.io/pricing/ https://healthchecks.io/pricing/ The primary difference is that HealthCheck caps their pricing at $80/mo whereas Pingdom let's it still linearly scale upwards. And that's kind of my point. Why artificially cap their "Enterprise" plan at so cheap, when Pingdom let's it scale to $10s of thousands per month.
      - cuu508 2y ago
        For customers who outgrow the 1000 check limit I do offer custom plans where the price and the limits grow proportionally - 2000 checks for $160/mo etc.
insane_dreamer 2y ago
Why does he need to grow revenue if it's already supporting him and growing slowly but surely enough to where he can spend time of stuff that really matters instead of just making more money. "Continuously growing revenue" is the trap.

guywithahat 2y ago

Although I don’t disagree, the conception of the company was he found an industry and decided to undercut it. Raising prices might be a risk here, since his customers are (presumably) more price conscious

bityard 2y ago

Ah, the Broadcom/VMWare strategy... Small businesses that actually find a market and turn a profit live or die on reputation. I have a feeling that 2x the price (even incrementally over time) would burn a lot of goodwill. But there is a middle ground. As long as your operating costs don't rise precipitously for whatever reason, you can keep your existing customers on their current pricing and give new customers your new higher price. It works in web hosting, anyway. (Usually.)

Aurornis 2y ago

> Increasing your pricing is the #1 way to grow revenue and weed out customers who abuse customer support. Unlikely with businesses like this. This business model is to offer a budget alternative to the big name services that doesn’t have the same level of support and reliability (it admits not having failover, for example) to customers who are okay with that in exchange for the lower price. Once you start raising prices significantly, it no longer becomes the budget option. Customers may not churn right away, but growth would slow substantially as people started comparing to the full-featured mainstream services at similar price points. The common startup wisdom is that raising prices dramatically is a magic wand to improve your customer base and grow your revenue, but that doesn’t work in the budget domain.

alberth 2y ago
> This business model is to offer a budget alternative to the big name services Who’s the “big name service” in this space?
- ashconnor 2y ago
  Pingdom?
  - alberth 2y ago
    Like for like functionality, their pricing seems fairly similar. https://www.pingdom.com/pricing/ https://www.pingdom.com/pricing/ https://healthchecks.io/pricing/ https://healthchecks.io/pricing/ The primary difference is that HealthCheck caps their pricing at $80/mo whereas Pingdom let's it still linearly scale upwards. And that's kind of my point. Why artificially cap their "Enterprise" plan at so cheap, when Pingdom let's it scale to $10s of thousands per month.
    - cuu508 2y ago
      For customers who outgrow the 1000 check limit I do offer custom plans where the price and the limits grow proportionally - 2000 checks for $160/mo etc.

insane_dreamer 2y ago

Why does he need to grow revenue if it's already supporting him and growing slowly but surely enough to where he can spend time of stuff that really matters instead of just making more money. "Continuously growing revenue" is the trap.