It could be 20 third-world employees. A client of mine uses ZenDesk and staffs it out of the Philippines. $1,000 is a ton of money in that regard especially when the hefty increase comes out of the blue. It's also straight users so if you have part time people it adds up quickly. Especially so when you factor in management that have accounts just to check up on staff.
However I think the biggest thing is they didn't sign up for $1,000. They signed up for half that. Regardless of the figures no one likes seeing a 74% raise in cost.
And there's nothing wrong with raising your price by a large amount, even if people are locked in with your product - you simply grandfather existing users.
You accomplish what you want, and your existing users win too because all of a sudden they're getting a great deal.
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It could be 20 third-world employees. A client of mine uses ZenDesk and staffs it out of the Philippines. $1,000 is a ton of money in that regard especially when the hefty increase comes out of the blue. It's also straight users so if you have part time people it adds up quickly. Especially so when you factor in management that have accounts just to check up on staff.
However I think the biggest thing is they didn't sign up for $1,000. They signed up for half that. Regardless of the figures no one likes seeing a 74% raise in cost.
Right.
And there's nothing wrong with raising your price by a large amount, even if people are locked in with your product - you simply grandfather existing users.
You accomplish what you want, and your existing users win too because all of a sudden they're getting a great deal.
Nobody leaves. Nobody complains. Everyone's happy.