Sublime
An inspiration engine for ideas
People always accused us of selling dollar bills for ninety cents, and said, “Look, anybody can do that and grow revenue.” That’s not what we were doing. We always had positive gross margins. It’s a fixed-cost business. What I could see from the internal metrics was that at a certain volume level, we would cover our fixed costs and the company woul
... See moreDavid M. Rubenstein • How to Lead: Wisdom from the World's Greatest CEOs, Founders, and Game Changers
John Luttig • Rippling and the Return of Ambition
- The Subscription Model
Georg Tacke • Monetizing Innovation: How Smart Companies Design the Product Around the Price
software firm offered cloud software for businesses at an extremely low monthly fee of $19.90 per workstation. The price for the comparable competitive product stood at more than $100. Several months after the launch, the company’s CEO told me that “small businesses are really excited about our prices. For the first time, they can afford this kind
... See moreHermann Simon • Confessions of the Pricing Man: How Price Affects Everything
From the outside, these types of venture-funded battles for market share look to be determined solely by who can raise the most capital and thus outlast their opponents. That’s half-true: while the amount of money raised is important, so is the burn rate and the “stickiness” of the customers bought through subsidies. Startups locked in these battle
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