Comment by throwup238
1 day ago
> But everyone wants us to pay $10/mo. It just isn't sustainable from a consumer perspective.
And so few actually deliver $10/mo worth of value. If 1password and Fastmail - the two most important services that control my digital life - are each $60/year, that's the standard of value other SaaS companies have to beat and very few do. The ones that do are like NextDNS where they cost $20-30 per year because the people running them aren't greedy lemmings trying to pay back VC.
> And so few actually deliver $10/mo worth of value. If 1password and Fastmail
Funny you mention Fastmail. I was happy most of the past decade until this week. I just had my email blown up by their new Paddle billing system with a ton of billing invoices since they decided it was no longer ok that I pay them a lump sump every 2 years, and that I must go onto monthly now. Initially I thought they were hacked but nope, just terrible communication.
I emailed them a few days ago and they only confirmed that Paddle is their merchant of record and they have been migrating accounts over slowly.
Tonight the CEO sent out a blast saying resellers need to be on monthly billing with their new system at new pricing.
Sorry Fastmail, I paid for 2 years back in October (I think this is my 3rd cycle with them). If you want me on monthly billing then you will wait until October 2027. That is a ‘you’ problem not a ‘me’ problem if you undersold the subscription this cycle.
> that's the standard of value other SaaS companies have to beat and very few do.
Of course it isn't. Just because some products or services are great value, doesn't make other products bad value. They can be anything from good value, to average value to low value.
And products / services are of course not comparable just because they are subscription based, or used on a digital device.
Gas has a fantastic value, one liter can transport me and my things a long way in short time. So does that mean that I can never buy a bottle of wine or some coffee outside of my home? They are after all liquids, and neither coffee nor wine can compare with the great value of gas.
> Just because some products or services are great value, doesn't make other products bad value.
Sorry, but no. If they're worse value than my email and password providers which my digital life revolves around and who only charge me $5/mo each, then yes those products are a bad value.
I pay $3,000/yr for Altium, $200/mo for Claude Max, $60+/mo for ad-free streaming, and begrudgingly $50/mo for Adobe so I'm not against paying thousands a year in nice fat profit margins if they provide actual value, like a shit ton of GPU compute time or a well made piece of professional software. "Value" here is obviously subjective relative to the beholder, but IMO the vast majority of SaaS I look at are hardly worth two bucks a month, let alone tens.
Not valid here, Sorry:
>I pay $3,000/yr for Altium,
You are definitely a professional/industryspecialist - so its quite obvious why you pay for this, same as a mechanic is paying for very important and expensive tools.
This mindest is not possible for "non-professionals" :-)
> "Value" here is obviously subjective relative to the beholder
Agreed, but the confusing part is that you don't seem to be saying "to me, those services only provide X amount of value, and I'd rather have $Y than that" -- you seem to be saying that if 1password and Fastmail were more expensive, you might be willing to pay the asking price for some of those services you currently consider bad value.
3 replies →
> If they're worse value than my... password providers... who only charge me $5/mo
In that case, people who run Bitwarden for free are screwed. In fact, looking at how much I use the web browser Chrome, and how much I get out of that, and the fact that I pay $0 to Google to use it (inb4 I'm the product because I'm not paying for it), paying money for anything digital is terrible value!
What you've discovered is that prices are all made up. If we think about how to price a product, say a chair, from first principles, you'd take the cost of the raw materials, the time it takes you to turn those raw materials into the finished product, add a %age profit on top, and call it a day. In the real world though, that's not how pricing things works. You have a product, which costs $X in raw materials, and then you just... make up a number, $Y. Hopefully, $Y is much greater than $X, and you're able to make a great living off selling your chairs. Maybe you're called Eames and people will pay you $5,500 for your chair/lounger, maybe you're Office Depot and sell them for $129. Maybe you're not very good at chairs, so they're not level and then you can't give them away, not even to your friends.
Life is not an optimization problem. You can optimize for value, but then you'll find yourself in Walmart at 1am realizing that the 3-pack is cheaper per-roll than the 30-pack that night for some reason, and getting angry over that.
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Then you cannot ever buy a cup of coffee, because it's also very bad value compared to Fastmail. Or a beer.
> The vast majority of SaaS I look at are hardly worth two bucks a month, let alone tens.
Then why are you looking at them,
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All bootstrapping founders should read the above post to understand why you should never build B2C.