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Ask HN: Does chargify's pricing make sense to you?

8 points by blaines ↗ HN
http://chargify.com/pricing-and-signup/

Start - 500 customers - ~$100/mo - ~20 cents per customer

Launch - 10 customers - $39 - $3.90 per customer

Why are they gouging the little guy's so much? They aren't the only ones that do this either. I know there's support costs and such, but there has to be a more sensible model, like amazon web services'. As customers utilize more units (i.e. storage) each unit costs less.

I'd much rather pay for what I'm using than getting something for free or feeling ripped off. What are your thoughts?

6 comments

[ 4.3 ms ] story [ 27.0 ms ] thread
jdg
If you're still figuring out whether or not people are willing to pay for what it is you're doing, then just use PayPal. Or mail paper invoices. Seriously.

Why would you EVER invest a ton of time in a billing system when you're just starting out? Billing is a HUGE time sinkhole. That applies to integrating with another provider (Chargify) just as much as it applies to not rolling your own.

Billing is not your product. Billing WILL make or break your product though, so once you've figured out that a reasonable number of people are willing to pay for it, then make sure your billing works and works well.

Also, if you can't afford $39/mo on a SaaS billing provider, then you're not serious about your startup and it's still just a hobby.

blaines
I'm thinking from a startup's pricing standpoint, not necessarily from the customer's perspective. As someone starting a web service does it make sense? Contrast with basecamp's $1.60 per project on basic and $0.99 per project on premium.

My opinion is Basecamp's pricing is much more stable, and makes sense, while chargify still needs to figure things out.

Also, I've been using Google Checkout for my startup's billing so far and it works reliably. They do have a subscriptions api and it works well. I absolutely agree billing systems do take a huge amount of time to make, and it'd be silly to concentrate on them instead of the product.

jdg
Basecamp is not critical to the success of your startup.

Billing is.

blaines
I don't think you're understanding me.
pchristensen
They have fixed costs (most support comes at the beginning when people are integrating) and low marginal costs. Once a merchant is integrated and using Chargify successfully, only then does it become inexpensive to add another customer.

Besides, once you get your 11th customer, you're paying $9 apiece, not $0.20! Lesson learned, if you have a small number of customers, Chargify maybe isn't for you.

earl
For the love of god, give chargify a rest.

Decision process: does chargify work for you at a price that is better than the competitors? Then use them. If they don't? Use a competitor or roll your own.

This online shitfest about their pricing is the stupidest thing I've seen on HN.