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Comment by katet

Wow, I'm impressed how grumpy one can seem in a few short sentences. Take an upvote for that alone.

GP has a certain - admittedly orthogonal - point. At what point does "just two coffees per month" translate into "too many coffees traded for services"?

If it's relevant, a fairly high-end black coffee made from medium-roasted in-house coffee beans - which I strongly enjoy - costs me $1.70 in my local economy.

So this costs me 5x coffees, or a work-week of coffee. And I'm a pretty well-paid foreigner living in a strange land.

If I were to take a charitable reading of the GP - with no expertise in economics on my side - I'd say they were pointing out that you are potentially losing a 65+% of your market for whom $9 is not "a couple of coffees".

That's not an indictment - maybe you don't care! Maybe 100x customers @ $9 = $900/month and the service pays for itself.

I am a big fan of what I think is Purchasing Power Parity (PPP) / Pay What You Can (PWYC), even though I see it pretty rarely.

I guess it depends on whether you want to provide your product/service to as many people it can benefit at once, versus the minimum number of people who can support your costs with a profit.

Neither position is inherently "wrong"/"privileged", they just seem to have different incentives and/or target markets.

The voice of a potential target market that is being excluded seems valuable to me - even if the revenue increase might be negligible per-user, perhaps it's worth considering the volume of potential users in that market :shrug:

(To re-iterate that I'm trying not to pick a side here: maybe it's not - maybe the business model is to target affluent consumers. That doesn't make criticism of the exclusionary nature of this approach "privileged", however, in my view. YMMV)

(Edit: minor emphasis)

parent katet 4 years ago

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