> Any real software business is happy to upgrade from the 28/mo plan to the 39/mo plan if it gets even the tinniest benefit.
But I'm not referring to benefits, I'm referring to "bragging rights". Say your company was utilizing a SaaS that offered a "Freelancer" tier and an "Agency" tier (where "Freelancer" costs less and offers less than "Agency"). Now if your company's needs could be serviced by the limits of the "Freelancer" tier would you pay more for the "Agency" tier just for the prestige of saying you pay for the "Agency" tier? No, you wouldn't. However that does happen with suits (or watches or luxury cars or other luxury goods), it's signalling.
FWIW: I was reading an article from Patrick / Patio11 just the other day when he talks about having experience with large companies upgrading their SaaS package just because the upgraded name sounded better on an expense report.
So it sounds like some SaaS upgrades may, in fact, be linked to the name of the package and nothing more!
But I'm not referring to benefits, I'm referring to "bragging rights". Say your company was utilizing a SaaS that offered a "Freelancer" tier and an "Agency" tier (where "Freelancer" costs less and offers less than "Agency"). Now if your company's needs could be serviced by the limits of the "Freelancer" tier would you pay more for the "Agency" tier just for the prestige of saying you pay for the "Agency" tier? No, you wouldn't. However that does happen with suits (or watches or luxury cars or other luxury goods), it's signalling.
http://en.wikipedia.org/wiki/Signalling_(economics)