Totally agree, saw it over and over again. Worst customers are those that get something for free. They are also the most illoyal (not really surprising).

I made the following observations across multiple B2B startups:

- Paying a high price triggered a behavior à la "we're paying dearly for it, so we better use it properly and frequently", which meant that stickiness (# of seats, hours of daily use) increased.

- Down the line, the customers who paid the highest price were the most loyal (in terms of churn & avg. contract period signed during renewal -- often signing for 5 years with a small discount when minimum was 1 year).

- Customers paying high prices had less support inquiries.

- Customers paying high prices were overall friendlier on the phone (don't have hard evidence for that).

Question -- in which direction is the causality working? E.g., when we assume that less support inquiries means that the users are more knowledgeable:

- Do high prices overall attract more knowledgeable people?

- OR are knowledgeable people better in estimating the true value of a product for their business, and thus are willing to pay a higher price?

- OR do knowledgeable people rather work in businesses that have higher margins, and thus are able to afford a higher priced product?

It seems for me that charging premium pricing had overall pretty positive effects on all businesses I've been working in.