Doubling SaaS Revenue By Changing The Pricing Model • Hacker News Board

Re: Doubling SaaS Revenue By Changing The Pricing Model

#71

Post by dmytton » Tue, Aug 14, 2012, 11:58 AM UTC

true_religion wrote: post #33

> The minimum buy-in for the service is now $99 a month, which should scare away the idiots. I'm scared, and as a potential customer I hate to be labeled an idiot. I'm very happy with New Relics system even though they're priced higher than you per server, they at least offer a price PER server instead of tiers.

This is a quote from Patrick and not how Server Density label the customers who are priced out. His observation is that, typically, customers only willing to pay a small amount tend to be higher maintenance.

Re: Doubling SaaS Revenue By Changing The Pricing Model

#72

Post by dmytton » Tue, Aug 14, 2012, 11:59 AM UTC

Silhouette wrote: post #70

adrianhoward wrote: post #47

Earlier quoted context omitted.

I'm scared, and as a potential customer I hate to be labeled an idiot. The idiots being scared away doesn't necessarily imply that everybody who is scared away is an idiot :-) Yes - you will cut out some very nice people who would make lovely customers by segmenting like this. However if this ends up: * getting more money using the new pricing model * removing a large chunk of support costs by getting rid of the high…

.... as a business should I care? If you can sustain that pattern indefinitely, perhaps not. If you're getting a quick boost at the expense of your long-term reputation, for example because customers signed up for your service and then you left them high and dry, then I think you should. Case in point: Around 2-3 years ago, certain recurring billing services made rather sudden changes to their pricing, which very pub…

It depends if you're "getting rid" of existing customers by forcing them into the new pricing. I don't think that's ever a good idea - they signed up at a specific price and shouldn't be forced to change if they don't want to. That's how Server Density have implemented this change - it's for new signups only. Existing customers can move if they wish but they'll never be forced to.

Re: Doubling SaaS Revenue By Changing The Pricing Model

#73

Post by alphamale3000 » Wed, Aug 15, 2012, 11:20 AM UTC

ricardobeat wrote: post #39

Retric wrote: post #36

Earlier quoted context omitted.

99$ a month is reasonable for bootstrapped company's. It's not reasonable for most hobby's, but 50$/month or 100$ / month are both rather high for a hobby website so there is little real loss.

Yeah, in the US where that's 0.01% of a salary. Not so almost everywhere else in the world.

Happy you're earning 1 million dollars per MONTH in salary. You didn't do the math, did you?

Re: Doubling SaaS Revenue By Changing The Pricing Model

#74

Post by mooktakim » Wed, Aug 15, 2012, 3:05 PM UTC

Server Density is a UK company. They use to have pricing in pounds.

They seem to have switched to dollar pricing.

My question: Are they taking payment in dollars? or are they converting the amount to pound equivalent in last moment and taking that payment?

I've been thinking about pricing on the internet, whether its good to price in dollars to make it more convenient for the american customers. I feel like customers from UK are alright with paying dollars, but americans don't like to pay in pounds.