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0 pointsativzzz2y ago0 comments

A former company I worked for started having a larger Indian userbase. We experimented with supporting them more and it would be similar to what you said - significantly lower prices for them. We chose to mostly ignore the Indian userbase and let them use the product as is without catering to them

The reality is that just because someone pays less doesn't mean they cost less to support. And then, if you support a large number of cheap users, it's even more expensive to support.

As a business, you'd rather have 10 customers paying $10 dollars each instead of 100 customers paying $1 each. Larger businesses can overcome this with economies of scale, but smaller businesses cannot

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Knee_Pain2y ago

you can make people pay 10 cents a month for the software but the support is a separate subscription

ativzzzOP2y ago

Support includes things like "I paid and my account doesn't work". In addition, you simply can't provide a good service without support. Being able to answer questions like "I'm trying to do X with your tool, how do I do it?" leads to better customer engagement and retention. It's part of the cost of doing business. The marginal benefit of doing that to microrevenue customers is not worth it financially, and as a result, you will never get as good of engagement nor retention from them.

One of the strengths of small business over a big co like Google is your support is NOT automated and you take the time and care to talk to and answer your customer's questions. You can't do that when you charge 10 cents a customer

On top of that, you still need to market/advertise to those users.

It's less time consuming, causes less friction, and is more profitable to just charge $10 dollars instead

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