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by onion2k 1886 days ago
But $30-50 feels really high.

Pricing is a good example of something that most people are intuitively wrong about. What you think people will pay and what people actually will pay are rarely congruent, and most of the time people guess far too low. Literally every bit of advice and writing about pricing I've ever read boils down to "Charge more than what feels right; you'll be surprised at how high you can go before you lose customers."

1 comments

Also, 50% of the highest-paying customers bring more than 50%of the revenue, by definition. Often much more.

Apple keeps applying this strategy since 1990s.

Tesla bootstrapped itself off $80k cars, and only now is expanding to the "reasonable" $30k market segment.

You may not need everyone jump on your service just yet, you can start with the most needing it who are moneyed. Then you expand, economies of scale kick in, and you can introduce lower and lower price tiers, and people enjoy falling prices and getting a bargain.