Making the legally-required part free as a loss leader to get people in the door?
I run a small product that lodges BAS (GST returns) for gig workers, Uber/DoorDash drivers mostly. I think I have an issue with acquisition, would love some feedback.
Two months in, 11 customers, $0 revenue. Rideshare drivers legally have to be GST registered from day one, doesn't matter what they earn, no threshold like other small businesses get. We charge $79 to handle that registration for them, then $79 a quarter after for the actual BAS lodgement through a registered BAS agent.
Went through the session recordings this week. 5 of the 11 dropped off at the same spot, and they're confirmed Uber drivers, so they're not confused about needing GST, they legally have to do it. They just don't want to pay us $79 for a compliance step they resent having to do at all, even though other providers charge more for the exact same thing.
So I'm thinking about making the GST registration free and only charging for the BAS lodgement afterwards, which is the recurring bit anyway. Basically eat the cost of the mandatory, resented step to earn the relationship, then monetise the part they're coming back for every quarter regardless.
Has anyone else dealt with this, a required purchase people resent, where the answer was to give away the mandatory bit and charge for what's ongoing? Trying to work out if this is obviously right or if I'm about to just train everyone to expect the whole thing for free.