Atul Raghunathan of Hyperbound.AI found that customers resist switching from discounts to a fixed platform fee plus low per-unit pricing, even when the total cost is cheaper. Buyers see the flat fee as an unnecessary charge rather than a better deal.
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when people are used to those discounting strategies and used to those types of pricing models, when you try to like shift the paradigm, when you say, hey, actually, this is, believe me, this is going to be the best model for you. I'll give you a platform fee. I know it feels like that hurts, but like what we will do after this is we'll give you a very low proceed price. So it's going to be very easy for you to scale. And in fact, like if you work it out, it's actually cheaper. It just, it doesn't work because that platform fee is just treated like a, almost like they treat it like it's entirely margin for you. It's like something that they can opt out of. They're like, that's an implementation fee. That's what I'm used to paying for. Oh, the fixed cost is an implementation fee. Like, I never pay for implementation. Like, get out of here with that. All right. So it's, yeah, it's, it's just, it's really just buyer psychology.