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I've been through this same exact price confusion with customers. They told us they wanted to pay a la carte, but when we tested it they very much did not. I t
by enjo 13y ago
I've been through this same exact price confusion with customers. They told us they wanted to pay a la carte, but when we tested it they very much did not.
I think the psychology makes sense. When they told us they wanted to pay on a pay per use basis they based that completely on the past. They did the basic math. Last month I did 16 tickets. At $.25 a piece I would have paid $4! That's what I want to pay!
When faced with a future purchase decision, however, the mindset immediately changed. Now the decision was unbound. What if in three months I get to the point I have 1,000 tickets?!??! My god, now it's $250/month. That's crazy expensive! That fear caused a lot of issues.
So we tried the logical next step. $.25 per use, capped at a certain dollar amount ($25/month). That was too complicated to understand.
So we just started charging a flat $25/month (sales-leads fwiw). That worked really well.
- jacques_chester 13y agoI think this is an example of the Simulation Heuristic, but I may be misunderstanding it. http://en.wikipedia.org/wiki/Simulation_heuristic http://en.wikipedia.org/wiki/Simulation_heuristic