Rod Aparicio

Costs don’t matter

Published 16 days ago • 1 min read

Yeah, they do matter, but not necessarily when pricing.

If they did (costs), the price of any SaaS would need to be near to zero, since the cost is marginal because it's scaled up.

If they did, the price for a flight ticket would need to be lower the fuller the plane is. Flights get all of their costs covered at a certain quantity of tickets sold (and that’s less than 30% of the seats).

Hotel rooms would have to be almost given for free the closer to the end of hotel-day or when they’re getting over X number of rooms sold. Yet, they get more expensive.

Restaurants and bars would have to give food away and/or tons of complimentaries, since their drinks are 400%+ in price compared to their costs.

Or are you paying for something else?

Rod Aparicio

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