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by matchagaucho 1320 days ago
Not if the SaaS has ongoing hosting bills, or years of R&D to recoup.
2 comments

"years of R&D to recoup" does not affect the marginal cost of providing the service to another customer
Good luck explaining sunken costs here! I have had many, many discussions about this on this very site and I think that since it is so non-intuitive to anyone that has not taken business courses they just do not believe it.
Going down market with steep discounts most often has higher maintenance and support costs.
Every SaaS has hosting bills.

Some of them are significant per customer, and some of them aren't.