A question on how to grow profit. Because MRR, isn’t equal to MRP
For non SaaS products, how do y'all determine appropriate profit margins? SaaS has very low costs. However, I’m building a XaaS product and I’m not sure how to apply the “charge more” philosophy.
I own a SaaS and a photography company. I actually find the “Charge More” philosophy a lot easier to follow in the photog business. With offline companies it’s easy, you just make sure you are the absolute best at what you do. Then charge for it! Yes profit margins are a lot thinner, but that’s okay. There is still money to be made. I find the easiest way to keep margins larger, is to really focus on standardization. Your customer costs should be laser focused.