Getting SaaS pricing right (2/2) - Varun Shoor, Kayako | BTS E15 | SaaSBoomi Podcast
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How to Pricing Your Product Effectively
A lot of people tend to put an overages which are great because some people don't tend to move on but the overages keep extracting that money out. So effectively you're paying a lot more if you are to jump on to the next plan so you have that psychological trick at play. I would say it's add-ons and effective add-on design is a mistake in terms of getting people to buy more or extract more value. It took me a while to understand that revenue is not cash that you get in yeah, just this concept of software revenue recognition for urban was very difficult for me to understand. And then we are moving a little bit away from the marketing side
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