Comment by unclebucknasty

>If we were to bring in an intermediary plan (say 500GB), we would have to increase the pricing of the 1TB plan (since at least 50% will now be utilized), and also set the price of the 500GB plan to at least 2x of the 100GB plan

What happens if you start by pricing all tiers "honestly" (i.e. reasonably profitable even at 100% utilization)? Have you determined that the market won't bear that pricing? If so, is there any way to meet in the middle?

In general, you may be erring a little too much on the side of asking some customers to grossly overpay for their actual utilization and, in practical terms, 100GB to 1TB is just an extremely wide gap, as evidenced by your parent's comment.

So, it seems that most who tip over into the 100GB - 1TB plan will be there, overpaying, for a long time. And, obviously, most people who make it to 1TB will pass through that range. So, if you do see a higher concentration of users in that range than at 1TB (as intuituon would suggest), then you're essentially "punishing" a plurality of your customers by asking them to subsidize a smaller group's pricing.

Failing other options, it may be better to do the inverse: raise the pricing of 1TB to accomodate a "friendlier" 500GB plan.