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> prices in recessions are raised in response to supply issues, resulting in less quantity supplied However it is software, supply is infinity and incremental
by shapefrog 4y ago
> prices in recessions are raised in response to supply issues, resulting in less quantity supplied
However it is software, supply is infinity and incremental cost is 0.
> But it's clear that in this recession there's less startups
Its clear thus far in this recession, that more people than ever are in employment. Thus more slack customers.
Inflation however ...
- wink 4y agoSmall nitpick, as it's not self-hosted but runs on their servers and bandwidth, the incremental cost is not zero. But I do think that just a single org with 10k people would probably not register as a lot.
- shapefrog 4y agoFair nitpick. Based on sticker price, a 10k org would only be ~$1mil in revenue for slack (maybe half that with a big org discount?). Really makes me wonder about the valuations like 30bn on total revenue of 1bn.
- ReaLNero 4y agoIt's clear that the fixed costs need to be paid among a fewer number of clients, so the prices increase. There is a difference between marginal costs and per-unit costs.
- shapefrog 4y ago> It's clear that the fixed costs need to be paid among a fewer number of clients I am sorry but it is not at all clear. Has there been a drop in the number of slack customers? Number of people in work is up. Unless slack has become unappealing as a solution to its problem, that means number of subscribers up. If slack is unappealing as a product and people are switching to teams / google that is an entirely different issue. It is also possible that those fixed costs have increased and they are passing on those costs, while retaining whatever margin they have, as there is inflation out there.