For example, even though Microsoft Office probably provides a lot more value than what it costs, it they doubled their prices overnight, would you not expect any outrage?
For example, even though Microsoft Office probably provides a lot more value than what it costs, it they doubled their prices overnight, would you not expect any outrage?
This breaks down severely on these web models, where you're more inclined to start out with a lower price and feature set while you gain customers, but want to increase the price as you add features (and value)
Its sticky and makes setting your first price point a more critical game.
I wonder if people have thought about "versioning" their SAAS apps. (do they? I don't have a ton of familiarity here). Personally I think Zendesk has to reward their early customers by keeping them at their current rate.
Short summary: anchor points play a great role in setting human expectations. When plaintiffs ask for exorbitant amount of money*, then usually will get more money than they really deserve because jury's anchor point is set high.