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I can't obviously dispute your personal experience, but I think we can both agree that price is a signal. I agree with you that you can mask your price increas
by noahc 14y ago
I can't obviously dispute your personal experience, but I think we can both agree that price is a signal.
I agree with you that you can mask your price increase and it isn't something that I'd considered when I originally posted.
However, I would argue that Bloomberg was priced high enough early on to not attract cheapskates. Again, pricing as a signal. If you're charging $15,000 and the person is making $1mm a month off of it the difference between $15,000 and $25,000 isn't very much. However, if you started out charging $150 a month and hope to get to $25,000 you're going to have a very hard time doing so even if your customers are making $1mm a month of the service because you've anchored your price so low. Again, there are probably creative ways to get from $150 to $25,000 like you mentioned, but I'm not sure I'm interested in spending my creative energy moving the needle that much when I could just start out charging a much higher rate.