Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Because the two smallest plans, while having high turnover, have also ultimately generated 65% of our revenue. So at this point, they're still a very important part of our customer base.

As far as only offering one plan, it simply doesn't make sense for us. Our costs go up based on the amount of usage, so it makes sense for the price to go up for customers who use more resources.



There's also a psychological aspect. Although I don't think it's as important on the lower end, as opposed to the people who believe they're actually being somewhat frugal by not choosing the (often mostly superfluous) "deluxe* version.


Thanks for the explanation. This is a great resource. My only regret is that I wasn't there to listen in!




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: