Sometimes it’s not being financially reliant on them; there are a lot of entrepreneurs who sweat the access question deeply or worry when the first HNer says “$49 a month for something you can approximately with 7,000 lines of shell script?!?”
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Do you think the tiny-bit-less-than-the-next-major-interval pricing strategy holds up in SaaS? E.g. $49, not $50? We vacillate on whether it's still good psychology or just looks cheesy. And we're reluctant to monkey too much with pricing to run experiments.
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I don’t have a strong preference here; experimenting on it many times in many places never produced anywhere near the improvement as “drop your lowest plan” or “double your prices.”
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What about pricing low as a strategy to get conversations going and incremental validation that someone (even not long term customer) is mildly interested in taking out their credit card for the promise on the landing page? Results in case studies, recommendations, etc...
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You get better conversations, case studies, and recommendations from people who are inclined to pay the real rates!
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I needed to read these tweets! I was very tempted to drop my lowest plan back to $29. After raising my prices I was getting fewer new customers, and more people were canceling their trials. But I’ve had to do way less support for the customers that keep using the service
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This is helpful for figuring out the direction of my company. Bootstrapped B2B with just me: keep prices high, get a few good customers and enterprise clients. VC funded B2B/B2C: lower prices, build consumer features and integrations, hire a support team
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Do you have a lowest point for B2C pricing as well?
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I can see your point, though... Dropbox is $12.5/month, Squarespace $18/month, Buffer is $15/month - seems to work for them. I can’t see many 1-person companies getting $49/month product, but they’d get the ones I mentioned.
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What about when you're doing per-user pricing of products you'd expect to sell to multiple users in a company? Are Survey Monkey's $32/$37 per month plans too low?
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