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Show HN: Non SaaS – Directory of Non SaaS Apps

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Re: Show HN: Non SaaS – Directory of Non SaaS Apps

#21

Post by frequentflyeru »

alberth wrote: post #12

> Inspired by … @Chamath (8090ish) 8090ish is a fake site. https://www.8090ish.com/ Why did you make this fake site? I like the concept. I don't have any strong mutual connections to Chamath, I made this on the off chance that I can get his attention to learn more about his plan. If you're reading this Chamath, let's chat! I'll happily hand this site over, and I'm happy to work with your team to build the real one.

Thanks I couldn't find any other info on it except what Chamath had said on a podcast, so I gave a link to the "fake" site since it explains the concept behind 80/90.

Re: Show HN: Non SaaS – Directory of Non SaaS Apps

#23

Post by seanhunter »

quaintdev wrote: post #7

We as Software developers need to be honest with ourselves and really think about pricing. The product should be priced as per the effort and time it took to develop. If application needs maintenance then charge it separately. But the customer should not have to pay for your SaaS because you don't want to work 9 to 5.

The problem with one-off pricing is that people generally don't want just one drop of software. They want ongoing updates and support. Which means if your pricing model is only one payment, in that world you're going to have a future cost stream but no future revenue stream to support it.

That's why software businesses with a one payment pricing structure often end up going bust - they rely on a structure where they need constant growth in their customer base to sustain support of existing customers. The software coompany going bust isn't in the interests of customers who want support either so this model just doesn't really work for anyone.

If a one-off payment is matched by a customer expectation of a one-off software install with little or no ongoing support then that's probably fine.

Re: Show HN: Non SaaS – Directory of Non SaaS Apps

#24

Post by frequentflyeru »

quaintdev wrote: post #7

We as Software developers need to be honest with ourselves and really think about pricing. The product should be priced as per the effort and time it took to develop. If application needs maintenance then charge it separately. But the customer should not have to pay for your SaaS because you don't want to work 9 to 5.

Agree. However, people are allowed to price apps however they want (ie. SaaS model), but shouldn't be surprised if they are overcharging and someone else makes something similar and charges less.

Re: Show HN: Non SaaS – Directory of Non SaaS Apps

#25

Post by baumschubser »

manuelmoreale wrote: post #18
bruce511 wrote: post #9

Earlier quoted context omitted.

>> The product should be priced as per the effort and time it took to develop When I started programming I costed projects like this. Now I price things based on their value to the customer. There were a number of reasons for the switch; Firstly in the earlier model all I'm selling is my time. All time I don't have work is lost, and I can't make it back. This resulted in years of being underpaid because a month of no…

> When I started programming I costed projects like this. Now I price things based on their value to the customer. What would the world look like if everyone was using this mindset? Water is VERY valuable to customers for example. So is food. Tech people have a very distorted ways to look at the value of their work and I say this as someone who works in tech.

but everyone is using this mindset. on average in an economy, prices are more or less the maximum what a customer might pay. If it is more, it is not bought obviously, and if it is less, it sure will be more sooner or later, because why not. What is preventing water (and e.g. health outside of the US) and schools etc. from getting super expensive is usually that they are not produced and sold as a commodity on a free market with competitors, but provided in a regulated, often state-owned way where market mechanisms do not (fully) apply. Where it does, things get ugly. Google "water war bolivia".

edit, to comment the original statement: Price must be >= cost of production, obviously. But it must also be acceptable to the customer. So you go as high as you can and if that is still not enough to cover your costs, then you stop your business and do something else. If it is very much higher than you need, sooner or later a competitor will notice the extraordinary profits in your sector and do what you do at a lower price.

Re: Show HN: Non SaaS – Directory of Non SaaS Apps

#29

Post by manuelmoreale »

baumschubser wrote: post #25
manuelmoreale wrote: post #18

Earlier quoted context omitted.

> When I started programming I costed projects like this. Now I price things based on their value to the customer. What would the world look like if everyone was using this mindset? Water is VERY valuable to customers for example. So is food. Tech people have a very distorted ways to look at the value of their work and I say this as someone who works in tech.

but everyone is using this mindset. on average in an economy, prices are more or less the maximum what a customer might pay. If it is more, it is not bought obviously, and if it is less, it sure will be more sooner or later, because why not. What is preventing water (and e.g. health outside of the US) and schools etc. from getting super expensive is usually that they are not produced and sold as a commodity on a free…

Saying that "prices are more or less the maximum what a customer might pay" is different than saying "I price things based on their value to the customer."

Because in tech that might be doable but again, the "value to customer" of something like food is obviously infinitely high because without it you ain't gonna go much far.

And there's a reason why generally speaking countries have laws to prevent price gouging around a certain types of goods. Becuase without them, I am 100% sure that some dickheads would try to screw people over because that is what capitalism is producing.

But also, this idea that you should be paid based on the value I get out of your work is bizarre to me. if you are self employed or you run a business, you decide how much you want to charge for a product or a service.

Why does it matter how much I get out of it?

Re: Show HN: Non SaaS – Directory of Non SaaS Apps

#30

Post by bruce511 »

manuelmoreale wrote: post #18
bruce511 wrote: post #9

Earlier quoted context omitted.

>> The product should be priced as per the effort and time it took to develop When I started programming I costed projects like this. Now I price things based on their value to the customer. There were a number of reasons for the switch; Firstly in the earlier model all I'm selling is my time. All time I don't have work is lost, and I can't make it back. This resulted in years of being underpaid because a month of no…

> When I started programming I costed projects like this. Now I price things based on their value to the customer. What would the world look like if everyone was using this mindset? Water is VERY valuable to customers for example. So is food. Tech people have a very distorted ways to look at the value of their work and I say this as someone who works in tech.

The problem with the "how much it cost to make" approach is that means that there is literally no room for error. You're not building in any cushion - no shock absorber. One bad idea, one dud product etc and the company goes under.

On the other hand there are _lots_ of examples of value based pricing outside the tech world. some examples;

a) Any "luxury good". Think Ferrari, Birkenbag, designer clothes etc. b) Any supply-constrained service - think rounds of golf at St Andrews. c) Popcorn at the movies d) Movie tickets (they are not dependent on the cost, or earnings, of a movie) e) Office rent. It costs the same to build a building, so why do rents vary so much depending on location?

and so on. value-based-pricing is not a tech thing - it exists everywhere.

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