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An admittedly wandering defense of the SSO tax


An admittedly wandering defense of the most unpopular pricing practice in SaaS

Sellers set mostly standardized prices for efficiency’s sake, but they nonetheless recognize price-setting as a yield optimization problem in careful consideration of buyers’ preferences. We should assume they’ve done a reasonably good job of matching prices to customers’ perceived value (and aren’t exploiting undue market power). The SSO tax empowers companies to offer vastly more generous tiers at low prices, bundling core features in the “Good” packages.

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