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What about price discrimination? Micro-economics 101 says using price discrimination is a good way to reduce consumer surplus, so a blanket "don't have low pric
by socksy 13y ago
What about price discrimination? Micro-economics 101 says using price discrimination is a good way to reduce consumer surplus, so a blanket "don't have low prices" is all very well, but you could have say, a small-business/home tier and get more money overall.
- SteliE 13y agoThat's a good point and I'll go back and clarify in the post :) I do think you want multiple pricing tiers. The question here is what's your baseline? Most SaaS startups start way too low. And once they get even a little tiny bit of push back they go back to their pricing tiers and lower them again. That's a deadly pricing strategy and I wanted to call it out in this piece :)