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Comment on You're paying too much for business softwareparent

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It depends on how you define fair: suppose you can save $80M by spending $60 million on software, which the supplier costs $2 million to produce and sell.

What is fair? That the supplier makes $58M, on an investment of $2M? Or is it more fair to buy it for $4M, and the buyer has a benefit of $76M?

The fact that you're paying way more than what it costs to produce doesn't mean it's not fair. Depends on the benefits that you get.

Another company may only get a benefit of $40M when buying the software, so it would make sense for the seller not to ask $60M.

So one way to define fair, would be to base the price on the value it brings you, not on the amount of money it costs to produce. But this varies per buyer.

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