Re:Pricing a SaaS product (2019)
by themacguffinman on Friday January 29, 2021 @07:13PM
(#25964609)
Just a theory: I suspect another factor is that developer tools is a market that attracts a lot of individuals who use them to do hobby or bootstrapped projects that don't actually bring in any revenue. They tend to be far stingier than businesses who typically have a budget and compare the price to their bottom line.
This is a good point. I never thought of that but it's quite probable. I wonder how to best deal with this. Maybe free forever for hobby projects and only charge when people use the software in their money-making business.
The way you said it makes me think that at $4/month, you might actually be competing with free, as the prices seem so close. If it's $20/month, they may not say "oh but why isn't it free" or even more so at $50/month.
At low prices, maybe it just seems too much of a hassle to sign up and pay, ie, "Ugh, just $4/month? And I have to go thru the burden of signing up and giving my credit card and all that?" Whereas at $50/month, the paying process pain may feel relatively smaller.