This. I once ran a SaaS for $7/mo. Churn rate was horrible. People never stayed longer than 3mo. Now I do something with a 4 figure / mo price tag and people stick around for 7/mo on avg. it’s totally counterintuitive
4 figures per month I need to justify to my boss. After that, cutting the service means admitting I was wrong.
You’d be surprised to learn how much someone else’s money people are willing to burn, to save face.
that's true but also it depends on the customer
is it b2b or b2c, something for 7$ could be something trivial, like a premium package for a note taking app, but something like a 1000$ is probably a b2b that the company needs.
Re:Pricing low-touch SaaS
by stedaniels on Wednesday February 28, 2018 @06:29AM
(#16482242)
What do you do now?
When you go for the lower price point, you're getting people less in your niche and thus want more bang for their buck, or really want a different product entirely.