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by aelhaji 2688 days ago
The elephant in the room is the lack of true dynamic pricing in SaaS. Dynamic pricing optimizes value capture and at the same time unlocks more value to users who otherwise would be stuck in the free tier. Of course, dynamic pricing is not easy to implement and might result in perceived price unfairness. But done right, you can immediately increase your revenue and drastically reduce the number of free users. True dynamic pricing involves a mechanism, such as the Vickery auction, to measure a user's maximum willingness-to-pay instead of A/B testing different price points. In an ideal world, every active user pays a portion of their maximum willingness-to-pay (perceived value).

Disclaimer: I'm the co-founder of Veylinx, a platform to measure maximum willingness-to-pay of users.
3 comments
gingerlime 2688 days ago
Veylinx looks interesting, but no pricing info on your website I could find... Is it also part of extracting maximum value? ;-)

In all seriousness though, I think your service is something I'd be curious to find out more about and try. But we're a very small company (B2C in higher education), so upfront pricing really helps me gauge if it's something I can realistically explore, or if it's those typical "enterprise: call us" scenarios, then it's just never going to happen.

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aelhaji 2687 days ago
Sent you an email.
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chdaniel 2688 days ago
Regarding the dynamic pricing, that's what I address in the next day's article, following this. I was saying that I'm hoping this way of conduting will be the standard more and more as:

1. It’s absorbed into culture as good practice. 2. It’ll be easier to accept micropayments, which I’m sure cryptocurrencies will take us to.

Emphasising point #2.

I got your email, I'll answer in a bit, thank your writing!

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baroffoos 2688 days ago
I have noticed a lot of education related subscription services only offer 1 year subscriptions when I only want to try it out for a month first. I guess its because a lot of users won't continue to subscribe for the year so this way makes them more money but I end up not subscribing at all.
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