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> How do you achieve super cheap products made by people making super high pay? Money doesn’t just materialize out of thin air to make that work. The marginal
by voisin 5y ago
> How do you achieve super cheap products made by people making super high pay? Money doesn’t just materialize out of thin air to make that work.
The marginal cost of another sale approaches zero. So if you make a popular enough product, you can sell many units rather than relying on rent seeking from your existing user base by forcing them into a SaaS subscription. Yes, the onus is now on the company to make good products that people want, and to continue to innovate such that people want to pay for the next upgrade. It’s easier to rent seek.