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2 Comments

Is this pricing model a thing?

I often find myself “inventing” something and discovering it already exists. But for this pricing model, I don’t know how to search if it’s a thing.

Pricing model:

Incremental pricing, based on the number of users.
For example, the price starts at $10 and increases by $5 for every 10 customers.

For recurring payments:

Same thing, but if someone stops paying, others move on the list.
For example, If I'm the 11th customer, I'm paying $15 per month. When someone who signed up before me leaves, I become 10th on the list and pay $10 from then on.

Is it even possible to do something like this?

I'm thinking a lot about this pricing model. I would love to go into more details, but wanted to check first if it already exists 😇

posted to Icon for group Money
Money
on December 1, 2022
  1. 4

    The pricing model you mentioned is very similar to a seat based pricing model in SaaS businesses.

    I think the slight twist you're adding, where each user is independent and their price depends on how quickly they sign up, is something I haven't seen before in B2C applications.

    In terms of feasibility, sure anything is possible, it could probably be a good way for a short term test to find the optimal price. If you're looking to keep this as a long term strategy my gut says it will quickly turn customers away if the value you're providing isn't enhanced by the number of customers you have.

    1. 2

      Thank you so much! Very valuable insight.

      I'll take a look at seat based pricing 😄

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