Suster: Hardware anchoring significantly increases consumer willingness to pay subscription fees
Mark Suster · Mark Suster, Upfront Ventures: Investing in Space, Defense, & Exit Opportunities · Sourcery with Molly O'Shea · Jun 28, 2024 · at 38:25
Mark Suster, Managing Partner at Upfront Ventures, analyzes consumer psychology around hardware and software subscriptions with host Molly O'Shea.
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“If I tried to sell you a product on your iPhone, download it and pay 20 dollars a month, It's so hard to get someone to pay 20 dollars a month for anything on their iPhone. If I sell you a 200 dollar piece of hardware, but then you need a 20 dollar a month subscription, it's very easy to get someone to pay for the subscription. For whatever reason, cognitively, once we're willing to pay for hardware, the subscription we're willing to pay.”
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