[T-hawk]

This often comes up regarding Dropbox. It's not that Dropbox couldn't offer a cheaper tier than $10/month. It's that they don't want to.

$10/1TB is not a ratio to be arbitrarily divided, no matter how much people want to assume it should be. Dropbox would lose more revenue from customers downgrading from $10 to $2 than they would gain from the few customers that care about the difference between $0 and $2.

$10 is the floor for Dropbox to care enough to serve any customer. It's a version of "fire your pathological customers", or rather to never acquire them in the first place. SaaS vendors know that the cheapest customers are the biggest headaches. If you care about the difference between $5 and $10, Dropbox doesn't need to care about serving you.