Re:How we de-risked our SaaS pricing strategy
by jakobegger on Wednesday March 01, 2017 @03:38AM
(#13762268)
If you are overwhelmed by support requests, one way to fix it is to charge more. Another way is to solve the underlying problem.
If only one in 100 customers sends a support request, you can spend an hour to answer it, and you still made a lot of money even if each user only pays $10.
Re:How we de-risked our SaaS pricing strategy
by aaronbrethorst on Wednesday March 01, 2017 @04:13AM
(#13762402)
> If you are overwhelmed by support requests, one way to fix it is to charge more. Another way is to solve the underlying problem.
These are not mutually exclusive choices.
Re:How we de-risked our SaaS pricing strategy
by k__ on Tuesday February 28, 2017 @05:03PM
(#13758540)
Is there a sweet spot for customers?
1 customer is a high risk.
10 are better.
But 1000 are Bad again?
Re:How we de-risked our SaaS pricing strategy
by Silhouette on Tuesday February 28, 2017 @05:49PM
(#13758985)
It's not the number of customers that really matters but the value per customer. It just happens that if you fix the total revenue for comparison, they're inversely proportional.
Re:How we de-risked our SaaS pricing strategy
by greenleafjacob on Wednesday March 01, 2017 @02:03AM
(#13761855)
higher customers = less volatile risk of churn, but the volatility in churn rate for 100 customers is probably about the same as the churn rate for 1000 customers, but 10x the support burden.
Your time is worth something, and customer support is a very real burden. In the case of a $10/month user, answering one customer support email more than wipes out all of the revenue you've earned from them that month.