I'm not sure if this helps in your pricing analysis, but personally I'm always looking for a discounted annual rate for services that are around your price range. Thanks for offering one. It's a big plus in my mind.
As I subscribe to more and more web services I frankly get tired of seeing the recurring fee show up either in my inbox, or in PayPal or on my CC statement.
There is definitely value to me as a consumer to pay for a service as I consume it, to spread out cost and risk, but there is a threshold where the convenience of an annual payment outweighs the pay-as-you-go pricing.
I just don't want the monthly reminder that I'm paying for something. Keep in mind, that before SAS, apart from recurring utility bills and rent/mortgage, most people's model of a subscription was a magazine. Most of those are annual payments.
BTW, I think the annual vs. monthly threshold for me is somewhere between $40 and $70 per year. It's dependent on the service itself, but for services in that range I'd opt for annual.
We realise that, and that's exactly why we offered the discounted yearly rate. Another reason is that payment services charge too much for payments of $2-3, so we save more money with an annual rate and can pass the savings to you.
Of course, there's the old "one in the hand, two in the bush" aspect as well, which gives an added reason for a discount.
As I subscribe to more and more web services I frankly get tired of seeing the recurring fee show up either in my inbox, or in PayPal or on my CC statement.
There is definitely value to me as a consumer to pay for a service as I consume it, to spread out cost and risk, but there is a threshold where the convenience of an annual payment outweighs the pay-as-you-go pricing.
I just don't want the monthly reminder that I'm paying for something. Keep in mind, that before SAS, apart from recurring utility bills and rent/mortgage, most people's model of a subscription was a magazine. Most of those are annual payments.
BTW, I think the annual vs. monthly threshold for me is somewhere between $40 and $70 per year. It's dependent on the service itself, but for services in that range I'd opt for annual.
Edit: Removed duplicate word.