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I have more zombie infrastructure than I realized: SaaS stuff I've paid for that I don't use as much as I thought I would. I tend to think of it as optionality, but it adds up 🤔 Demand-tracking pay-go pricing would likely expand many SaaS markets. Metering is the future.
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Go-to anecdote of this is how Samuel Insull, who architected US grid power, discovered he could 10x market size by shifting from billing for installed lightbulbs like Edison to metering watts (he discovered meter tech on a trip to Brighton, UK), which made it 10x more affordable
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to increase the market size. Low margin at high velocity can sometimes beat high margin at low velocity if you get the pricing design right. Max-capacity utilization of capital assets etc
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Slack is doing this (stop using it, they auto pause payment on the account) In general, the heuristic is keep pricing simple. Also, companies want the $$ from those dormant accounts.
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How you meter seems important. If you meter per minute, I'm going to feel rushed while using it. What Slack does seems like the right balance: regular SaaS pricing schedule (per month), with dormancy that kicks in.
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