Quote:
Originally Posted by The Porn Nerd
Oh I am sure the customer base will just absorb it but this does not mean I am happy about it. Like when your bank charges you ridiculous fee after ridiculous fee. Now what if the bank then says "Pay me $25 a month on top of all that"? I would not be happy. Perhaps you would shrug it off.
|
Australian banks charge like wounded bulls, but there are four big ones and a number of other smaller ones, so the market can shop around for the best product/price point.
Like everything in business you have inputs and outputs, income and expenses. A maximum $25 fee in the grand scheme of things is not going to make or break most businesses and they will either absorb the price increase on transactions or they will find a way to pass the cost on to their customers.
Adobe has been charging $49.95 AUD for Create Cloud Suite and is now putting that up to $64 or something like that - their reasoning the weakening exchange rate - now that is a fairly big increase in percentage terms but it's swings and roundabouts - I use the product and couldn't do without it, it's also still good value for money when compared to the days of buying software outright and it's expense-able. However on the other side of the equation, each $USD I make is now worth 25% more to me than it did two years ago, so I'm still ahead overall.
There's going to be a whole lot more upward price pressure for cloud and online services over time - companies will begin charging what they think the market can bear, so the best bet is to make sure that you are able to hedge for expense pressure and find subtle ways to pass on price increases to your own customers. The market works it all out in the end.
In a post above someone is suggesting making money by up selling in your members area, that's one way to help cover the upward pressure on expenses over time without fucking over your existing customer base.
