This tool allows you to model the behaviour when you have two products of different prices. The model includes MRR calculations so you can understand the mechanics of expansion MRR.
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Notes:
- The model assumes that the second product is an extension of product one, ie this means users who purchase product 1 may in time upgrade to the second product to receive more features and/or services.
- This upgrade "path" provides a way for you to increase the revenue from your existing customers over time.
- That said, there will also be customers who want to save money, or feel that the lower priced product is all they need. If they start with (or upgrade to) the second product, it would be classified as a downgrade.