With a subscription based web application aimed at businesses: Is it better to set the initial price at the high end of what you expect people would pay and lower it if it becomes necessary, or should you start with a lower price and then try to increase it once more features are added?
The main dynamic that I've having an issue with is:
- High price -> fewer customers but "more" profit.
- Lower price -> more customers but "less" profit.
I know I can do some spreadsheet jiggery and come up with some graphs and such but I'd really like some practical advice from people that have done it before.
Then again does price matter this much when selling to businesses?