I am reminded of Joel Spolsky's observation (http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html http://www.joelonsoftware.com/articles/Camelsand

I am reminded of Joel Spolsky's observation (http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html http://www.joelonsoftware.com/articles/CamelsandRubberDuckie...) that there's no software priced between about $1,000 and $75,000, because anything that costs above $1,000 has to be approved by multiple layers of corporate bureaucracy, which means you need a salesman to schmooze potential customers into giving up that loot, and it's going to cost you $50,000 just to make each sale. (Joel wrote that five years ago, so I assume the numbers have shifted around a little, and he doesn't really talk about SAAS pricing models. But the general idea is sound.)