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Price - how the web can be cheaper

We offer our products at a relatively low price compared to competitors. Some customers then ask themselves how we can charge a lower price and at the same time offer a better product. They see the normal price and quality relationship. But our price is very much related to the cost of operation. Offering applications on the web is a lot cheaper than making & distributing cd’s, having consultants install software etc. Read this great post by Ryan Mcintyre (VC, one of the founders of Excite) to see how the cost of datacentres have been drastically cut down the last decade. That is our advantage, we use it and our customers benefit.

Written on 08 March 2005.
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