You definitely didn't get it right. =) That's one of the joys of startup life, A/B test it until you do!

Even for a "successful" site (>1mm MAU) $2,000 a month feels insanely expensive. The performance difference between this and GA ($0) is not high enough _initially_ to offset the sticker shock.

Look at NewRelic, Tracelytics or even Mixpanel (expensive IMO) for better pricing levels. You've built the equivalent of "hosted snowplow" (https://github.com/snowplow/snowplow) with a nice GUI and tools, you should expect to charge something much closer to cost than your current approach appears to.

I'm not saying that Heap have got the pricing right but you should absolutely NOT look at cost when you put pricing together - rather, you need to ask your customers about the value of what it is you're providing. For example, Heap will be saving the time and hassle of deploying a generic solution on a server and the time of customising it. Plus Heap will be improving their product every day whereas the self-hosted version would need a developer to add new features. These sort of things all add up - you'll be surprised what you find out when you ask your customers.

Pricing is hard. There are a lot of good articles and discussions on HN if you do a bit of searching.

If they can sell successfully at that price point, I'd consider starting a competitor and undercutting them.