2 ms·
> If you can add 2% of revenue/quarter or save 5-10% of an expense, you can name your price (as long as it's below the amount of revenue you generated or money
by swyx 4y ago
> If you can add 2% of revenue/quarter or save 5-10% of an expense, you can name your price (as long as it's below the amount of revenue you generated or money you saved)
this is fantasyland pricing. the reality is that
1) its often very hard to know how much revenue or expense improvement was directly attributable to your thing and people will err against you. you often need to be in the ballpark of 10x better than the “hire someone to do it in house” option.
2) people will look at comparables for pricing and it is very hard (not impossible) to charge above your peers no matter what business value you provide. if you have the audacity to claim, as many do, that you have no peers, then good luck convincing a remotely critical person that you should be paid for your service rather than you paying them for using their time for your market research .
i'm all for encouraging people but dont give unrealistic expectations on how hard it is to create and sell b2b software please.
- deleted 4y ago[deleted]