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The cup-of-coffee pricing fallacy

blog.gingerlime.com

101–102 of 102 posts

Re: The cup-of-coffee pricing fallacy

#101

Earlier quoted context omitted.

But if you’re poor...you’re probably also not in the market for a $100/m B2B Saas product.

If you're poor you are not a target customer for any non-essential paid for monthly service.

Counterpoint: https://www.rentawheel.com/

Re: The cup-of-coffee pricing fallacy

#102

This article frames the cup-of-coffee pricing comparison as: "$100/mo is less than a cup of coffee every day". But I most frequently see the comparison as: "$5/mo means giving up just a cup of coffee once a month". In this formulation, I think it's a pretty reasonable comparison, since a prospective user doesn't have to sacrifice much (just a semi-luxury item, one day a month) in order to use your service. The author…

An "X" every day reminds me of the guy who set out to eat McDonald's food every day. There's usually a large difference between doing something whenever you feel like it and literally doing it every day for eternity.

You can make a lot of money simply by selling the right to a cup of coffee every day in advance. A cup of coffee every day is equivalent to the price of a luxury car, from the point of view of a modern capitalist, and figuring out a way to charge people accordingly is a straightforward arbitrage.

https://en.wikipedia.org/wiki/Perpetuity

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