Yes, it is an ideal case, a reference point for me. It won’t be found in real life, I guess, but it helps to build a framework on how to think of prices.
I meant that the price is not a factor within a context of #chargeless. I.e. when my price is not 10x less, but 10% less in the price range below 10K. These differences typically do not justify much discussion - the buying budget is bigger than each of the options on the table, and the accompanying costs of implementing the solution are much higher than these 1K of difference. Hence I do not see a direct benefit in dropping prices.
(Again, I speak from my buying experience, not selling, alas)
OK, how is that proves #chargeless is a right approach? It is more like 50/50 then, eh?
Besides, I’ve heard many times - and at least once from your own podcast - that the customers willing to pay more are the best customers, not too demanding, with little to no support. So are you suggesting to charge less and move into the land of worse, more demanding, more support-hungry customers?
Fair point. “Charging above one’s brand” is a skill on par with “Punching above one’s weight” - hard to do, I guess.
And here we move from the ideal situation of the reference point to the real-life mess…
So, what I’m supposed to do at this point? Just dropping the price? That looks like a knee-jerk reaction to me.
Would there be an option to give each buyer their own tier, maximizing the revenue for you and usefulness for them? Would you normally have information required for that (say their budget?). (I guess that’s what companies with “call us” pricing do…)
Are you ready to share an info how much support costs per customer?
I mean, even when SaaS infrastructure is cheap (but not free), the support still costs something. Those costs have to be collected from the paying customers, right?
But then again - I agree that freemium is a good way to spread awareness and practice your own vendor lock-in. But it is not #chargeless - it is as you said advertising, customer acquisition, whatnot. But until these free users became paying customers, they are irrelevant for price discussion - they are still high in the funnel, and may never drop from its bottom into your bottom line.