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You have to consider costs. If it costs them $15/month to provide the service (just a made up number) then $10/month would not be reasonable. The Plus users als
by zarzavat 3y ago
You have to consider costs. If it costs them $15/month to provide the service (just a made up number) then $10/month would not be reasonable. The Plus users also subsidize the Free users to a certain extent.
The other effect at work here is anchoring. OpenAI wants people to be prepared to pay more for AI. Setting a higher price anchors that price in people’s minds and makes it feel normal. This will serve them better in the future since the long-term objective is to provide services that replace employees, who are surely paid more than $20/month.
- somewhereoutth 3y agoBut therein lies the crucial question, does the actual business value of the service exceed the costs of running the service + reasonable profit margin? If not, then no amount of anchoring will help.
- raincole 3y agoNah, you have to consider how much time it saves for you. If your rate is $30/hr and ChatGPT saves you 1 hours per month more than free alternatives then why not? Cost is their business, not yours (unless you're a competitor to them).