From a similar experience I have found this to be true. Specifically:

  - one size fits all is very difficult to do.  most companies have a critical feature that is unique to them

  - the CEO is likely to view this kind of product as 'trivial', without really considering how much engineering effort it will take / they really need that custom feature.  so yes they build it themselves.

  - very small companies are not comfortable providing 3rd party access to their db

  - larger companies want more than this

  - the selling cost to companies tends to be high enough that going the low cost / high volume route is difficult, quickly driving you into consulting level prices / a more fully featured & tailored product