Ask HN: SaaS operators, what is the cost:earnings ratio of your SaaS?

Re:Ask HN: SaaS operators, what is the cost:earnings ratio o... by jwr on Saturday August 19, 2023 @04:11PM (#37192655)

B2B SaaS here, if you are asking about the gross margin (revenue minus cost of goods sold), I've always kept it above 90%. I'm careful not to use expensive hosting (like AWS) and I keep a close eye on COGS at all times.

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Re:Ask HN: SaaS operators, what is the cost:earnings ratio o... by master_crab on Saturday August 19, 2023 @04:57PM (#37193114)

COGS is key (and difficult). If you have an app that just serves up APIs, great. Just cost per request served.

When you start dealing with blended and combined costs (like large data warehouses) things can get hairy. But always aim for some estimate of COGS.

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Re:Ask HN: SaaS operators, what is the cost:earnings ratio o... by zabana on Sunday August 20, 2023 @07:06AM (#37198008)

I run a serverless stack on AWS and my only cost is a minimal RDS instance that runs me about $15/month. I'm genuinely curious as to where this reputation for expensive hosting comes from.

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Re:Ask HN: SaaS operators, what is the cost:earnings ratio o... by icedchai on Sunday August 20, 2023 @09:29AM (#37198953)

If you do anything requiring 24x7 compute on EC2 (tons of CPU cores and memory), it adds up real quick. What does your app do?

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