I run a B2B SaaS. Support costs is what eats you alive: in case of a complex B2B app anything below $40/month is unsustainable. This is of course better for simpler apps/services, but even there you have to be super careful.
I run a B2B SaaS. Support costs is what eats you alive: in case of a complex B2B app anything below $40/month is unsustainable. This is of course better for simpler apps/services, but even there you have to be super careful.
In terms of the costs to run a saas, we are actively monitoring hardware utilization and resource allocation. Antonio and I have a lot of experience building and running saas (and paas) products so we feel confident we can manage whatever usage comes our way. We have also been strategic in terms of the services we provide in an effort to keep service support manageable.
It does also mention there is a $0 "Starter" tier.
(I found that link on this page:
EDIT: Mention the Starter tier.
I agree to an extent. But it largely depends on the complexity of your offering. If all you do is expose flat data through an API, you can maybe get away with an API Gateway x Lambda x DynamoDB combo, which would cost virtually nothing as the free tier is very generous.
Just my 2c.
Especially with B2B, it's easy to underestimate the support load for non-technical issues.
How does that factor into the $40/month price point ?
Back in early 2000s I ran a shared webhosting business, most customer's were savvy at the time and it was kind of a "you're on your own, let me know if the infra is acting up" type arrangement. I ran it with about 2000 customers for a year or so solo and only got about 2 support emails a day. Back then, 24-72 hour response was acceptable so I never needed to be a 24/7 resource.
Similarly, if you think 1000 B2B SaaS subscriptions is an easy-to-achieve number, I'd wager a bet you haven't run a B2B SaaS business.
Roughly, the calculation is: at $40/month, a single subscription brings in $480/year. That means you can safely afford to spend roughly one hour of support on a subscription PER YEAR. If you spend more than 2h, you are definitely in the red. And you will get support requests, of all kinds: the ones you expect, and then all the stuff about lost passwords, inability to log in, network problems, lost invoices, requests to change the billing period, requests for invoices from last year for a customer that has since canceled and been deleted, data export/import, etc.
People who haven't run a business routinely underestimate the costs of running a business and imagine that these numbers mean that business owners are buying yachts and private jets. People who have run a business realize that it's much more difficult to make ends meet than it seems.