On: Purchasing Power Parity: Fair pricing for SaaS products

[matchagaucho]

Not if the SaaS has ongoing hosting bills, or years of R&D to recoup.

[TAForObvReasons → matchagaucho]

"years of R&D to recoup" does not affect the marginal cost of providing the service to another customer

[mhuffman → TAForObvReasons]

Good luck explaining sunken costs here! I have had many, many discussions about this on this very site and I think that since it is so non-intuitive to anyone that has not taken business courses they just do not believe it.

[matchagaucho → TAForObvReasons]

Going down market with steep discounts most often has higher maintenance and support costs.

[Dylan16807 → matchagaucho]

Every SaaS has hosting bills.

Some of them are significant per customer, and some of them aren't.