Right now you're charging nearly as much as something like Netflix, so your product has to be nearly a Netflix' worth's more value than DuckDuckGo (rather than Google as it's closer to your value proposition) for me to rationally justify the price.
One thing that's great about search engines in terms of entrepreneurship fundamentals is that is is such a massive market. You only need a fraction of a percent to be a viable business, I'm sure.
I can also understand how underpricing a product can be a big mistake. Somebody who wants this kind of product has already made the conscious decision to pay. Pricing a product too low can be a signal that it's not a good product.
Perhaps one might say that this is an example of how complexity and cost of production is a bit detached from the customer's willingness to pay. The most complex software product, the operating system, is essentially given away for free. People are mostly not willing to pay for it, even businesses don't want to anymore. On the other end of the spectrum, there are SaaS products with very low levels of complexity pulling in a lot more than $0.
If it's truly barely breaking even at $10/month, that fascinates me. It must mean that search engines have to do a lot of computing.
In any event, I wish you the best, because the features do look cool. I like the idea of being able to set site preferences (e.g., when I search for a movie I might like to see Wikipedia over IMDB).
Spot on. Not that long ago we used to pay for OS, even beta versions of OS. Nowadays, most complex software products imaginable, like OS, browser, search engine, social networking... - are all free, and over the years we as a society have been slowly drawn into an expectation of these to be free. Of course someone or something is paying for it, as all these also "magically" generate hundreds of billions of dollars of revenue. And when someone shows up with an idea to actually sell such product and tries to create a business where user is also the customer, and incentives between the user and the business are aligned, they are usually looked at with a raised eyebrow.
I am personally of the opinion that you always get what you pay for and that one should not shy away from paying and supporting products they love. I hope we are building one such product, that some people (and admittedly you need to be a little different to use and pay for Kagi) will fall in love with.
Is it that you're doing a large amount of compute per search which yields better results but higher cost per search?
On premise search. Businesses have lots of resources on their internal websites, but no easy way to search them in one place. Addition of role based search, when I'm logged and search only shows me resources I have access to.
It is also an independent company, bootstrapped by the founder, without a ton of VC money to subsidize the cost. And at $10/mo per user it would be barely breaking even, if at all. So there are a lot of factors of play, and I completely understand why $10/mo may sound excessive given all the free alternatives out there. It is just one of the many uphill battles we are fighting ;)