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by nine_k
1883 days ago
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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. |
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