6 ms·
(Cross-posted to https://news.ycombinator.com/item?id=22013580 https://news.ycombinator.com/item?id=22013580 per @dang above.) I don't know anything about Post
by basseq 7y ago
(Cross-posted to https://news.ycombinator.com/item?id=22013580 https://news.ycombinator.com/item?id=22013580 per @dang above.)
I don't know anything about Postman, but this is an interesting case study on price increases.
No one likes price increases, but they happen. So long as you have a strong ROI use case, you can navigate those discussions with your customers. E.g., "You were getting a 50x return, but listen, we're running a business over here, and a 45x return is still pretty darn good."
The challenge in Postman's case appears to be that they ALSO reduced the bundle components. So you compound the perception from "paying more" to "paying more but getting less". That's worse optics.
What I'd offer you think about is this may be a perfectly rational and even optimal customer solution. It's unifying two different pricing actions: price increase and product bundling. The logic being that many customers weren't using all the users, API calls, documentation views, custom domains, and integrations that were previously included in, say, the Pro bundle.
So as opposed to increasing price by—I'm making up numbers here—12% and leaving bundle elements the same, they increased price by 10% and cut features by 2%. The end result is exactly the same, but is actually better for most customers because they will get the same level of features they needed and not have to pay that additional 2% for features they weren't using anyway.
- dang 7y agoI appreciate that you took the time to include helpful links, but please don't cross-post. Copy-pasting lowers the signal/noise ratio here. If you want to refer to what you posted elsewhere, please use a link to do it, and perhaps add some new information that's specific to the new context. (In this case, of course, that's not necessary because the entire thread has been merged!) https://hn.algolia.com/?dateRange=all&page=0&prefix=false&query=by%3Adang%20copy%20paste&sort=byDate&type=comment https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...
- basseq 7y agoOf course. I started commenting before the merge, but posted after it, and didn't want this comment to be orphaned. Re-posted in the "correct" thread, and left this comment for traceability only.
- dang 7y agoThanks. That degree of circumspection is unusual and if everyone practiced it we'd have no worries at all, so I'm sorry for the criticism!