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Comment by jonas21

Everything you said makes sense -- but at the same time, when building a SaaS offering, your initial product may have much less functionality than what you eventually plan to build.

If you start at the price you want to charge in the end, people will look at the product and say, you expect me to pay $X for that?

One thing that may work is to offer early adopters a lower price, and keep them at that price forever, while charging later customers more. But to do that, you need to raise the price for new customers early and often -- otherwise you'll end up with too many people at the lower price. And if your costs scale with the scope of your product, that could mean you're losing money on a large fraction of your users.

parent jonas21 5 years ago

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