That’s a farce; it happens all the time, revenue stops increasing from growing the customer base, so the prices are raised on the existing customer base to cover costs and keep things operational. Why do you think Netflix still isn’t $8.99, and password sharing is no longer permitted?
If you definitely know you can’t make enough money on 30% of 1,000,000 people, but you can make enough money charging 10% of 1,000,000 people a higher rate, you’re going to do that … because it’s your only option. There are diminishing returns to picking up new customers with lower prices.
That’s a farce; it happens all the time, revenue stops increasing from growing the customer base, so the prices are raised on the existing customer base to cover costs and keep things operational. Why do you think Netflix still isn’t $8.99, and password sharing is no longer permitted?
If you definitely know you can’t make enough money on 30% of 1,000,000 people, but you can make enough money charging 10% of 1,000,000 people a higher rate, you’re going to do that … because it’s your only option. There are diminishing returns to picking up new customers with lower prices.