3 ms·
>If you're going to have different pricing tiers, the higher tiers need to ostensibly have more work put into them. You can't just say that if you fit into one
by jere 14y ago
>If you're going to have different pricing tiers, the higher tiers need to ostensibly have more work put into them. You can't just say that if you fit into one bucket of people we know you have more money, so we're going to charge you more (e.g. DVD regions). You need to give them something more for it, so that your customers don't hate you
See, I used to think this until I heard a talk by Kendall Miller in which he described his pricing experience.
He had an enterprise tier that was orders of magnitude more costly than the other tiers. Executives would skip straight over the other tiers and buy the enterprise level happily. Customers would come to him and say "I love you guys! You really understand the enterprise."
That tier did have extra features, just like you're encouraging. But the punchline is Miller logged the use of every feature and discovered not a single one of his enterprise customers was using the extra ones. They simply wanted to pay more.