3 ms·
It could be that the price of the software reflects the effort that goes into the sales cycle, or ongoing support. Say you can hack together a competing product
by byoung2 7y ago
It could be that the price of the software reflects the effort that goes into the sales cycle, or ongoing support. Say you can hack together a competing product in a few months. You still have to go out and win over customers from the 800lb gorilla. That may be harder than you realize. They may also value a more expensive product more than a cheaper one.
- muzani 7y agoLarger companies also have economy of scale - they can hire product managers, have a constant recruitment funnel for support, have a proper sales process, etc. Marketing costs can be significant - I often see sales/marketing take up about 30%-50% of the final price of software.