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by akcreek 1793 days ago
Curious what the thinking is with the steep volume discounts? It is cheaper to have 251 users than it is to have any number between 41 and 250.

You run into some weird pricing this way. For example, 250 users on the pro plan is $1,000/mo while 251 is $220.88.

1 comments

It's volume pricing for users above that threashold, if that makes sense.

So, the first 100 users are $5.60/u/m or $560/m, if annual (to keep numbers consistent).

101 users would be $564/m as only the 101st user would be $4/m on the annual plan.

We stole this model from jira.

Gotcha, so the lower pricing applies to the incremental users. I didn't get that from reviewing the pricing page.
Aah thanks for that feedback - Out of curiosity, and if you don't have an answer all good it's not your job at all haha, but:

How would you go about explaining our pricing to a peer/what would you change about the page to make it more clear?

Thanks in advance :)

It's definitely tough to articulate. It's basically the same concept as progressive taxation in the US as your rate increases on a per dollar basis when moving through the brackets. Though you are going the other direction and discounting deeper as you move through the brackets!

It seems to be a subject that trips a lot of people up. It's really common to see people talk about their marginal tax rate as if it is their effective tax rate. "I pay 24% in taxes and make $175K/year" - Not really though, you paid 24% on ~$4K of income, but 10% on the first $19,750, 12% on the income from $19,751 to $80,250, etc. Your marginal tax rate is 24% as that's what you'll pay on the next dollar, but your effective tax rate on all income earned was actually 14% (or whatever it actually is, just a loose example).

In your case, the discount is so significant that I'd think you'd want to showcase that. Maybe a slider to adjust the number of users and show the dollar amount of the discount as well as the total percent saved, which will continually grow as you increase the bucket of users in that lowest bracket?

Or in that FAQ you could give an example of a 300 person workspace and show how the calculation pencils out. Having to do math to figure out the ballpark cost of the product isn't great though, so if the info is public (ie you don't have to contact sales) then you should probably make it super easy to get to.

Just some ideas. You never know, everyone else might get it right away and I could have just been slow on it. My brain definitely went to doing rough math and thinking about how weird the pricing is at different user counts though!

No I think it's super valid what you shared. After all, we really approach things with the mindset that if something is ever unclear be it within the product or marketing, it's always on us and not the customer. I.e. if a flow (or copy) that seems super obvious to us and power users doesn't make sense to new faces, that's an us problem, not them.

But yeah we've certainly had a slider in the past with a calculator so could certainly build that back into the page! I'm 100% with you on not making people do the math, especially with the pricing plan/tiered approach we've taken.

Pre-business plan it was super neat to test out what user number was most effective to show on the initial calculator view. Plus it was a great edition for the CS team when sending potential customers ball parks of plan costs.

But this was incredibly helpful feedback so thank you so much. :) If we get the calculator up and running soon I'll be sure to send it your way!