1) Pricing too low would actually discourage buyers. Half of the time someone says this, it's nonsense; customers prefer cheaper. But 10% is too low. Would you buy a Slack clone at $0.50/head or a $2/month TalkGPT?
2) A good amount of cost would be non-software. Hardware is becoming a larger portion of costs.
3) Software development isn't just writing code. Most of my day now is just writing notes to verify what AI is doing, i.e. actual engineering. AI has gotten so damn good that fixes are about 1-10 lines or so per ticket, but now the comments become longer than the code. You do save time, but now we're tackling Highest Priority bugs that have been around since 2023.
4) Parkinson's Law: work expands to fill the space. Your competitors also have the same tools. You'll see companies like Stripe drop from #1 to #4. The market share will be taken by new players willing to work 996 but using AI to cut it down to 40 hours/week.
Comments
Weirdly enough, no.
1) Pricing too low would actually discourage buyers. Half of the time someone says this, it's nonsense; customers prefer cheaper. But 10% is too low. Would you buy a Slack clone at $0.50/head or a $2/month TalkGPT?
2) A good amount of cost would be non-software. Hardware is becoming a larger portion of costs.
3) Software development isn't just writing code. Most of my day now is just writing notes to verify what AI is doing, i.e. actual engineering. AI has gotten so damn good that fixes are about 1-10 lines or so per ticket, but now the comments become longer than the code. You do save time, but now we're tackling Highest Priority bugs that have been around since 2023.
4) Parkinson's Law: work expands to fill the space. Your competitors also have the same tools. You'll see companies like Stripe drop from #1 to #4. The market share will be taken by new players willing to work 996 but using AI to cut it down to 40 hours/week.