Re:Freemium business model pricing
by petercooper on Wednesday July 21, 2010 @12:01AM
(#1534305)
Not saying that it's a tactic that works 100% of the time, but anecdotally speaking, I see it around on SaaS websites.
It's proven to work. A couple years back there was an article about how Carl's Jr introduced a new expensive burger. Sales of the second most expensive burger jumped up, yet the expensive burger didn't sell well. They removed the expensive burger from the line up, and the previous best seller's sales fell. Having a highly priced "top" plan/product is a tide that raises all boats, it seems.
It's proven to work. A couple years back there was an article about how Carl's Jr introduced a new expensive burger. Sales of the second most expensive burger jumped up, yet the expensive burger didn't sell well. They removed the expensive burger from the line up, and the previous best seller's sales fell. Having a highly priced "top" plan/product is a tide that raises all boats, it seems.