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Comment by mytailorisrich | Hacker News Reader

It would have been great to have their reasons for lowering prices.

Were they more expensive than the competition? Was their conversion rate poor because of price? Are they seeing better revenue with the lower prices?

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They are pricing the product to align with 1 hour of a freelancers time. By saying 20 euro per month instead of 30, they increase their market to include the freelancers who work in the 20-30 euro per hour range. Not saying I agree with this logic, but this is the why they shared.

That might be the rationale to pick 20euro but that does not explain why they felt they had to lower prices (and they also lowered the top tier plan), which would be the most interesting IMHO.

The top tier reduction isn't very scientific. We had 99% of our paying customers on the middle-tier and we engaged a couple of them asking how we could improve the top tier to motivate them to try it out. All of them said that 60€/mo was higher than what their gut would allow them to pay.

In addition, we allowed Basic customers to also invoice by creditcard or subscription, which was the main feature requested for Professional. Since isn't not exclusive to Professional, that does lower the total value of that tier.

If you disagree with logic, please let me know :)

I expanded a bit on this in another comment, but these essence is this: We set the original prices based on our own hourlies and those in our network. Since launch, we've had considerable feedback from other industries where the average hourly is much closer 20€.

Basically, if you can't pay your own bills, I don't want you paying for ZimTik.

In addition, the customer gate was prohibitive for landing customers and the 30 days to send out your first invoices was stressful. The combination meant we had to lower prices and include invoices without the time-constraint.

Hopefully we hit the mark this time.

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