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Easy...both. Keep the $10/mo plans for consumers. And offer the $1,000/mo enterprise plans for enterprise. That way your cheap customers will drive a lot of your high end sales.
Just tossing it out there, but isn't the price point of a product also a big director in consumer expectations? Not that I support making a crappy product, but consumers who pay a lot more generally have higher expectations about what they're spending their money on (rightly so, at times). If you have a 1000 people who figure it's the price of a soda so who cares vs 10 people who won't get off your case about some pe…
You'd be surprised! In my experience, folks who pay A WHOLE NINETY NINE CENTS OF MY MONEY have very shockingly high expectations of polish / quality / feature selection (but no desire to e.g. read what the software actually does), whereas if someone signs e.g. a contract for $X0,000 for enterprise software, it lacks a feature, and they ask for it, "Thanks for the feedback, we'll consider adding that in a later releas…
Just tossing it out there, but isn't the price point of a product also a big director in consumer expectations? Not that I support making a crappy product, but consumers who pay a lot more generally have higher expectations about what they're spending their money on (rightly so, at times). If you have a 1000 people who figure it's the price of a soda so who cares vs 10 people who won't get off your case about some pe…
I can tell you from our experience with Stormpulse that this is 100% false and backwards. Those that pay more are more willing to work with you. Nothing more expensive than someone that expects the world for $10.
As a data point I have about 900,000 customers to service (iPhone apps). I've also had times in my career where I have had one customer (department of defense). I'm much happier with the 900,000. I think an assumption Jason makes that i would contest is that you need to provide the same level of service to 10,000 people that you would provide to 10. When your app is at a low price point, you aren't competing on custo…
Earlier quoted context omitted.
On the other hand you need just one cost-cutting round or one unforgivable support foul-up to lose 10% of your revenue overnight. Model A likely won't see that kind of volatility.
I disagree. People who are paying $5/month have a much lower threshold before they leave than an enterprise paying $20,000/month. Also larger more expensive services tend to end up with more business integration and the cost of moving to another service is typically substantial.
Earlier quoted context omitted.
On the other hand you need just one cost-cutting round or one unforgivable support foul-up to lose 10% of your revenue overnight. Model A likely won't see that kind of volatility.
I disagree. People who are paying $5/month have a much lower threshold before they leave than an enterprise paying $20,000/month. Also larger more expensive services tend to end up with more business integration and the cost of moving to another service is typically substantial.
Also, consider setting a price that cuts out the vast majority of demanding cheapskates but keeps it salient for the rest. $200 is a good starting place. You can also achieve this by charging for the entire year up front instead of monthly billing.
Earlier quoted context omitted.
I can tell you from our experience with Stormpulse that this is 100% false and backwards. Those that pay more are more willing to work with you. Nothing more expensive than someone that expects the world for $10.
Maybe it's not that they pay more that makes them more likely to work with you, but rather there's something about people who have more money to spend (ex Enterprise-level customers) that changes their awareness of the realities of the solutions they buy.
As a data point I have about 900,000 customers to service (iPhone apps). I've also had times in my career where I have had one customer (department of defense). I'm much happier with the 900,000. I think an assumption Jason makes that i would contest is that you need to provide the same level of service to 10,000 people that you would provide to 10. When your app is at a low price point, you aren't competing on custo…
How complex is your app? Is it entertainment or productivity?