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I did mix up consumer and development, but I think the general point still stands. I don't think so, especially because you are mixing the two. For an employee

I did mix up consumer and development, but I think the general point still stands. I don't think so, especially because you are mixing the two. For an employee that costs $6000 a month, $10 per month per employee that increases productivity significantly is a steal. If you have a household budget where you can spend $100 per month on luxury goods, you might want to forgo the technical advantages of Dropbox over competitors and opt for a competitor that undercuts Dropbox' pricing.

viraptor 10y ago
Ok, shouldn't have mixed them. What I meant is that you can replace the VMs with netflix, instagram filters, or some other consumer services. There's lots of standard luxury goods-like services available. And you're right - you may go with the cheaper competitor when you don't have that kind of money to spend on something not necessary. The parent said: "Price sensitivity to consumer SaaS always catches me by surprise." - which is what we both seem to agree on - even consumer prices add up and people will go for cheaper alternatives.