[davidjgraph]

Interesting concept, I can imagine you're right about the amount of mis-pricing.

The temptation would seem to be to run with your system for 12-18 months and then turn it off once the numbers seem optimized. Do you expect that and how do you intend to combat it?

[abelr]

The usage really differs depending on the size of the company. For larger companies, they tend to have entire pricing teams and the pricing is never "Done". In this case we are adopting a subscription-based model and are trying to optimize prices in a very granular fashion (per country, tradeoffs between usage-based and subscription based fees etc.). Those customers tend to need experiments for the rest of their company's life.

Then there are smaller companies. Think Seed or Series A companies that focus on getting prices in the right ballpark. For them, we provide a lot of value at first by finding the right price (and country adjustments) at first, and then provide a bit less value when they found prices that seem to work well. We adapted our pricing to reflect it with a low-ish subscription fee to maintain our infrastructure and show localized pricing to their users, and an experiment-linked usage based fee. We're happy with this system as it aligns well with the value we are providing.

Later we will add dynamic promotions (think personalized time-limited promotions based on the user's usage of the app, or country holidays promotions) to increase conversions and help companies be local at scale, which should help us generate ongoing value, even to smaller companies.

[vincentmarle]

If you think about a supply/demand curve, picking one set of prices will always be suboptimal (and leaving surplus on the table), ideally you’d want to charge different prices to different groups of people to maximize your surplus. So if you think about pricing as a dynamic continuum, you can’t easily “turn it off”.