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Eridrus | 1 month ago

SaaS software is not generally zero marginal cost since you run the infra, have support, etc, but maybe in your situation is close to zero since its very simple.

If you have no sales, but your costs are very low, you should try it.

The main reason not to would be costs or cannibalizing your higher value customers (which you don't have).

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victorbjorklund|1 month ago

Most SaaS products have close to zero marginal cost, since marginal cost is the additional cost of taking on one more customer. If you already have a thousand customers, what does customer number 1001 actually cost? In most cases, you do not need more infrastructure and you do not need more developers. Maybe you need a bit more support time to answer a few extra emails or take a few more calls, but that is usually it.

There are exceptions. Some SaaS products have infrastructure costs that scale linearly per customer, for example if you spin up a separate database for each tenant. Others are very hands-on, where a large part of the cost is human support or service work, so each new customer does add real cost.

But for the vast majority of self-serve SaaS products, the cost of adding one more customer is effectively near zero in the context of the overall business.

Eridrus|1 month ago

I don't really know what sorts of scale you've worked on, but software operating costs growing roughly linearly is pretty normal.

You need to process X% more requests, you need X% more machines.

You need to store X% more data, you need to buy that much more disk, etc.

Many things scale worse than linearly too.

If your SaaS product doesn't do very much, sure, the costs might be cheap, but plenty of SaaS products just do a lot, processing lots of data for customers.

Datadog it a canonical example of an excellent software business, but even still, they have real infra costs because there's just a lot of data to process.

pingananth|1 month ago

You are right! My costs are negligible and I just shipped the parity pricing feature hoping to do more sales as currently the count is less from these regions.