Or, and that’s the other option, if you can get the same offering at a lower cost.
For example, for me, as a user, IRCCloud is far too expensive, because for half the monthly cost I can run a Quassel core (an open IRC bouncer with similar functionality) for 10 users.
So, to me, I have a choice between 4 bucks a month for a product, or 0.20 bucks a month for the same product.
A big issue with this are the silicon valley wages. Most of these services are priced for users in Silicon Valley, where 5 bucks a month are nothing.
But out in the rest of the world, money is worth a lot more, and as a result, the entire cost/use equation changes, making many of these products impossible to afford.
The simple fact is that if people don't have to pay for something, most of them won't. And that makes plenty of sense.