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Every product follows demand curves. At a price of 0 you could find infinite usage. This has nearly zero relation to how much it costs to provide the product.
by pixl97 6d ago
Every product follows demand curves. At a price of 0 you could find infinite usage. This has nearly zero relation to how much it costs to provide the product.
- bunderbunder 6d agoExcept of course it relates. All else being equal, we will prefer $X COGS over $2X COGS because that helps us with both profit margins and price competition.
- pixl97 6d agoIt relates in the sense there's a minimum cost of production without losses, not the actual price people are willing to pay.
- bunderbunder 6d agoFraming it in terms of the price people might be willing to pay for a single product in isolation frames the point I was making, which was about price competition, right out of the picture. Maybe I'd be willing to pay $10 for product A if I had other options. But if there's a product B for $3 that's not quite as nice but still ticks all my boxes, then product instantly becomes a lot less attractive.
- trombuance 6d ago>At a price of 0 you could find infinite usage Infinite demand isn't a thing. Even if they'd offer free compute forever (not likely possible) I and many others would still use local models that we have full control over and that do not harvest our personal data.