Lessons from YNAB's Price Increase
Mark and Jesse discuss YNAB's recent price increase, and the psychology of customers around pricing. You can't make everyone happy, whether you justify the price increase by citing your own increased costs or by plainly stating your price increase without explanation or caveat. Jesse points out that some customers that have complained about the price increase have moved to competing software, which has copied (read: stolen) YNAB's look, feel, and functionality. Jesse's primary lesson is this: it's important for a business owner to know what is and what isn't important. It seems rational to get worked up about copyright violation and intellectual property theft, but that path leads to headaches and large legal bills, if anything can be done at all. In this case, he chooses to ignore the competing software becasue, in the end, they are focused on different audiences. The audience that wants a YNAB clone for less money is a small segment of the market that is very price sensitive. On the other hand, YNAB focuses on the segment of the market that isn't doing anything to manage their money, to help them get their finances under control and deliver value. As Mark points out, tweaking a product or service solely based on customer feedback can be a slippery slope. You think you are satisfying everyone by responding to various demands, but there's a danger that you end up building a product customized to a small segment of the market that's already bought into your business, and losing the appeal to the broader market that isn't a customer yet. Mark Butler The Money School: https://moneyschool.works https://markbutler.com https://letsdothebooks.com YNAB https://www.youneedabudget.com