Do you also increase your price to new potential customers at the same inflation adjusted rate as existing customers?
Because if not, how do you not get resentful existing customers who are long time buyers of your service who end up paying more per month than a new customer?
Yeah, the initial price is pegged to CPI inflation as well. So everyone is paying the same amount, I’ve grandfathered in a few old customers on sweetheart deals, it’s a lower cost substitutable good so my market is at the low end and sometimes they really don’t have much money. It’s an ignored segment and we’ll work our way up the value chain to the high end eventually. It’s a slow but steady process.
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Do you also increase your price to new potential customers at the same inflation adjusted rate as existing customers?
Because if not, how do you not get resentful existing customers who are long time buyers of your service who end up paying more per month than a new customer?
Yeah, the initial price is pegged to CPI inflation as well. So everyone is paying the same amount, I’ve grandfathered in a few old customers on sweetheart deals, it’s a lower cost substitutable good so my market is at the low end and sometimes they really don’t have much money. It’s an ignored segment and we’ll work our way up the value chain to the high end eventually. It’s a slow but steady process.
Would you mind revealing what the segment is? Now I'm curious!
Sorry to disappoint but not until I have a sizable moat.