Does 250 customers paying $10/mo is better? Or Does 25 customers paying $100/mo better?
From user acquisition to customer retention to other things, which is best for bootstrapped companies?
People say it’s easy to get someone to pay $10 but it’s very hard to do customer support tiny teams ya.
What if the product is not straight forward product like task manager ?
Both provide you with the same revenue, but the first option means you have x10 more customer support to deal with.
Thanks Man. Yes am aware it's the same revenue, no doubt on that.
If you were the one who is to run the business, which approach you do?
One more related question, you can see intercom charge minimum of $50 per seat. And has multiple add ons to buy. But the near to feature tools charge less. May be the quality may not be that great, but people still buy that lesser solution as well.
who would you like to be and why ?
Usually higher paying customers are more high quality i.e. less likely to churn and more likely to give you honest feedback to improve the product as best as you can because they want value for money.
I'd go with 25 customers at $100 over 250 customers at $10 any day just because of the reduced support time tbh!
Hmm actually we had churn rate as well when the price was higher. In my common sense, I thought they can't continue to afford that price. But also they may be lost trust in their idea. Am sure they didn't move to another platform.
What could the reason?
A bigger audience helps you refine your product to market fit
That's not realistic actually from the experience I had so far. A bigger audience has wide variety of things to ask and wide variety of use cases they apply. This only increases the size of the backlogs, and chances to deviate the focus. With a lean team, you can do only few things.
Yes Market trumps the product/team,etc but isn't it always recommended to start with Niche but still have long term goal of broader later?
Everyone must segment the audience. You should learn about that before you spin your wheels. ... https://userpilot.com/blog/customer-segmentation-guide/
Well what are you actually building? It really does depend on some of the stuff you've mentioned there. How realistic is it that you can get 25 customers at $100/month versus 250 at $10? What's your plan to scale look like? What kind of audience are you targeting?
You can get around the customer support/tiny teams problem by relying on self-serve users, but it is a problem if you've got a complicated product. But maybe your product also doesn't need to be as complicated as you think?
(I actually have a couple of ebook resources that might be helpful here if you're interested in giving them a look. Just let me know!)
Here is what we have built so far https://tradly.app and continue to enhance further.
You are right it's not super easy to get 25 customers/mo just like that. Need lot of convincing but I feel to focus on quality customers list.
The product is bit complicated though because it's not meant to be a simple solution of e-commerce software. If that was the case, there wouldn't be lot of web builders on top of Shopify. And also mobile app builder on top of shopify.
So my assumption here is the backend API will continue to thrive as it is. This is meant for developers, so we are not charging anything. it is a pay as you go package. iThere isn't no convincing need for developers as they purely rely on APIs to build apps and it's straightforward to them. but the no-code front end app due to the variety of customisations people may ask, we deliver three approaches to it
So customising an mobile App is a hard job, provisioning certificates, bug fixes > rebuild > redeploy is time consuming. So that's why we charge more. The problem we are solving is taking the pain of internal team to manage this app or tech side.
So in this case? or I am missing something?
With this information, I'd definitely point you toward 25 at $100/month, if you believe that pricing reflects how valuable your product is! It does sound like that's the case to me.
You're right that with something more complicated, 1-on-1 demo and custom support is a big benefit for users. So yeah, important to take into account your resources in terms of team and time when making this calculation.
It sounds like you're basically in the right mindset already. Quality of customer over quantity, taking your time to get them on board and deliver the best value for them.
I recommend taking a look at this ebook https://www.nonfik.com/ebook-listing/product-qualified-leads-the-what-the-why-the-how from page 25 onward. It talks about how much time and effort you should put into acquisition, depending on the size of the account and complexity of your product. If I've misunderstood anything, you can still use this to double-check your plans I believe. Let me know if it's helpful!!
THANKS A LOT! I added into my kindle.
" you're basically in the right mindset already." Am still in the doubt hahaha. Thanks for the kind words.
Will keep you posted after reading the part you mentioned! Thanks again.