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As a group of software developers, I suspect there won't be much sympathy found here. You shouldn't price at cost+, but rather at value+. Many of us work on Saa
by numlocked 15y ago
As a group of software developers, I suspect there won't be much sympathy found here. You shouldn't price at cost+, but rather at value+. Many of us work on SaaS solutions, which have little to no marginal cost, yet we charge for the service.
- xorglorb 15y ago> Many of us work on SaaS solutions, which have little to no marginal cost, yet we charge for the service. The cost of programmers to create the product, the cost of servers, system admins, etc. Those aren't small costs.
- neilc 15y ago> Those aren't small costs. No, but they are largely fixed costs, not marginal ones. http://en.wikipedia.org/wiki/Marginal_cost http://en.wikipedia.org/wiki/Marginal_cost
- deleted 15y ago[deleted]
- pyre 15y agoBut what are the fixed costs of SMS? It's traveling over a network that was initially built to carry voice traffic, and is currently expanding to carry data traffic. How much of the network was built specifically for SMS? It really seems like it was something shoehorned into existing infrastructure. I have a hard time coming up with the fixed costs of SMS (at the carrier level; You could always add the cost of phone makers to build in support, but that's not the carrier's job).
- chappar 15y agoUnlike voice, SMS will be stored in a server and in case your mobile is switched off you will still get the message, when you switch on your phone. So, there will be bit extra cost for maintaining these servers.