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I've some reservations with regards to your pricing model. Say when I go from 3 user to 4 users I pay 33% extra. At basically no extra cost for you as a supplier ... (the operational cost difference between 3 or 4 users is in the case of a CRM system negligible). That simply doesn't feel right.


1) That is even more true for tiered pricing. Is there an alternative you know of that doesn't involve the price going up as your usage goes up?

2) If you expect software pricing to match the marginal cost to the supplier, then I think you're out of luck. All software is this way. There are huge up-front costs to build the software, and the cost of actually selling an individual license is close to zero.

Pricing in general shouldn't be about what a product costs to provide, but rather what it's worth to the customer.


I do not expect software pricing to match the marginal cost to the supplier per se. And you're right that pricing in general is done in relation to what's the customers perceived value.

However, I disagree with your first statement. Lets take Highrise pricing plan as an example. For the 6 user plan you pay $24/month - which comes down to $4 per user. For the 15 user plan you pay $49 - about $3.26 per user. So my total cost of course goes up with usage, but not in a linear fashion.

You could also make that happen with the $x/user/month scenario, but that gets probably rather complex without ending up with tiers again.




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