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by biggestdummy 1644 days ago
Price should be based on value to the user - not cost to you. So ask yourself this question - if you have 2 customers, each with 25,000 profiles. Customer 1 has average monthly sends of 1,000. Customer 2 has average monthly sends of 10,000. Is customer 2 getting 10x more value?

If they make revenue per message sent, then the answer is "yes". Customer 2 is getting 10x the value, so you can charge them 10x the price. Your current model maps with value.

If this is the case, you have a "fire bad customers" case. That is, if you are a car insurance company, you make more money by causing your worst drivers to stop being your customers! You can simply tell them that you aren't interested in working with them any longer. Or you can set incentives which will select against them. (Minimum charge per month?)

But if Customer 1 typically has more value per message sent because of the selections which your system is using, then there is value which you are not capturing.

A new system could try to capture that value any number of ways. $x per 10,000 profiles, plus $y per message sent, would be straightforward.