Because most Saas products are much harder to replicate than you think, and the market for Saas is 95% B2B where cost to acquire a customer is insanely high. I

Because most Saas products are much harder to replicate than you think, and the market for Saas is 95% B2B where cost to acquire a customer is insanely high. If your market is businesses with employees, the difference between $1/month and $100/month for a piece of software is a rounding error. This means even something that only saves the business an hour each month, is worth it for $100. Even if you buy 100 of these apps, it’s still cheaper than the all-in cost of a single employee. Conversely, you could ask the same question about anything. For example: A lot of [employees] are making money hand over fist yet they seem easily replaceable. Furthermore most [employees] don’t have network effects or large switching costs. Given these dynamics, why haven’t we seen a race to rock bottom in [employee] prices? Either the market is persistently inefficient for some reason (usually isn’t the case) or there’s something you’re not accounting for in your assumptions. If you’re one of the people who say things like "Intercom? Pffft! I could spin up a clone in a weekend!," I would say you're in the latter.