Comment by a-ve
17 hours ago
Fair point. The billing part of it is managed via Stripe - I'll put up the update/cancel subscription part on the Customer Billing panel soon.
17 hours ago
Fair point. The billing part of it is managed via Stripe - I'll put up the update/cancel subscription part on the Customer Billing panel soon.
Consider adding a lifetime option next to your sub options.
Consumer purchase behavior is highly impulsive and irrational. Businesses are very rational and like subs, but for many people, subscription fatigue is a real thing. Make the lifetime option 3-10x the annual rate; done. People will buy it. In my app I set it at 3x (but my annual sub is quite high; 6/mo, 30/y or 100 lifetime) but other apps, like Halide, have 12/y or 80 lifetime last I checked.
You get guaranteed revenue, and you get it upfront - better for cashflow. And you can always tell customers “if you don’t like subs buy the lifetime option”.
> Consumer purchase behavior is highly impulsive and irrational.
This is correct. It’s quite possible to both satisfy more customers and work within your constraints.
Eg $30 bucks lifetime would be nice. You could put it in small print below the main pricing to avoid decision fatigue and keep things streamlined for subs.
Often those early adopters appreciate and become advocates. Subs fatigue is a real thing
GoodSync's pricing is notable: $20/year for five devices, but stackable. I've signed up for 10+ years. GoodSync needs central infrastructure to work, so the ongoing pricing makes sense.
It is utterly bizarre that you portray consumers as irrational for not wanting subs and businesses as rational for wanting subs. Both are rational in their own interests: businesses want subs because it means more money and more control in the long run. Consumers don't want subs because it means paying more money in the long run and eventually having their software taken away from them if the company goes under, makes an anti-consumer update, etc. Consumers are not irrational just because they don't want to give you money every month forever.
I wasn't trying to trash-talk consumers, but I was trying to be as clear as possible on how consumers behave to give good business advice.
A lot of consumer spending comes from motivation. Purchase intents come in burts, an "alright I'm gonna commit, I'm gonna do this" moment. As a consumer app developer, you really need to understand that. Some of your users might use your annual sub for five years, some only for one, some for two. If your average lifetime is 2.5 years, a lifetime price that's 3x the sub price gives you more revenue - and revenue upfront - than a sub. Subs are fantastic because they give you predictable recurring revenue, which is worth a lot in the long run (which is why Wikipedia prefers monthly donations instead of larger one-time sums, for example), but if you're getting started, cash flow is everything.
Consider how much software and goods you bought that you thought you were gonna use but then never touched. The $1000 music software bundle from Native Instruments you bought because you thought it would finally bring you to make music? That guitar you bought because you really thought you'd play it? The home gym equipment so you'd finally do some sports? These purchases came from a commitment "I'm gonna do it", and statistically speaking, most people don't follow through with this commitment. A monthly payment for these things would've been much, much cheaper for them. "Oh, but if I own it I can always pick it up again", you say? Who's stopping you from resubscribing if you want to? It's purely emotional.
There are tons of books on purchase psychology; this applies all the way to owning vs renting a flat.
The mistake many developers make is not factoring in how highly people value perceived security of one-time purchases. Offer a lifetime option, and price it accordingly. It's much easier to upsell people while they already have a purchase intent than to resell them your app every year when the new subscription bill comes in. Even if, statistically speaking, it would be much cheaper for most of your users to choose the annual subscription, you will end up with happier users if you offer an expensive lifetime option, and you will end up with more cash in your company. Everyone wins.
That’s an economic concept, not a dig at consumers. It’s well known (hell, there’s a nobel laureate for it) that humans are irrational when it comes to economics.
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