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pHollda | 2 years ago

Your first and second paragraphs are better arguments for subscriptions over one-time payment than they are for the existence of high profit margins despite software's cheapnes.

3rd paragraph. I'm not arguing against profits just, overly high ones in the face of cheap 'raw materials'.

4th and 5th. Questioning high profit margins in businesses (didn't realize eggs too had high margins tbh) and wondering if profits should be capped seem like obviously related things.

Solutions? In the case of SaaS:

— Product pricing starting high, but declining over time (yes, literally making laws that new software MUST be absurdly expensive at first).

Would mean:

(i) Fewer 100th x competitor software product since it's hard convincing people to part with say $100, you need to actually have a 10x solution.

(ii) Increased organic word of mouth growth, since users have an incentive (declining pricing) to increase total users.

discuss

order

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