Re:Bushido (YC S11): An App Store For The Web That Can Kicks...
by biot on Monday August 29, 2011 @10:38PM
(#2939897)
If I built a product that allowed you to answer support requests 10% faster, then logically you'd be happy paying an additional $750/month per support person for the software?
[ Parent
| on HN ]
Re:Bushido (YC S11): An App Store For The Web That Can Kicks...
by wheels on Tuesday August 30, 2011 @01:09AM
(#2940198)
• No, you can't set your pricing to capture all of the theoretical value that your product creates. Otherwise it's a wash. Also, there's friction in any system, so you not only have to create value (that I get to keep), but do so enough to justify the switching costs.
• No, not unless you have no competitors. And if you have a generic solution to lower support costs by 10%, if you don't have competitors now, you will soon.
• No, software pricing isn't rational. Oh, how I wish it were at times. But in general, unless you're an amazing salesman, your prices have to be at a level that to the customer feel "about right".
Re:Bushido (YC S11): An App Store For The Web That Can Kicks...
by patio11 on Tuesday August 30, 2011 @12:24AM
(#2940105)
I once worked in the customer service division of a company which had, well, let me call it a hundred CSRs. We had an internal application to do everything.
They didn't exactly show me the company budget, but I'm as capable of counting engineers as the next guy. Suffice it to say we paid way more than $75k a month for the productivity gains of that custom app. (It was my first encounter with Enterprise Software (TM) and I think I went into programming in part so that no one should ever again have to suffer like us CSRs suffered...)