Caterpillar

Daily Thought - 2024-10-29

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It is well-known in business circles that business-to-consumer (B2C) tends to be a harder model than business-to-business (B2B). Businesses make money (that is their purpose; otherwise they'd be hobbies or startups). If they have a problem, they can often connect that to a number, in cost or unrealized revenue. A solution to such a problem has value.

Consumers are different. (I don't like the word "consumer" in this context, since users of programming languages are creators. I'll call them "private buyers" from here on.) If something makes them 10% more effective, they can't connect that to a monetary value. This makes them more price-sensitive.

"Higher prices" might sound greedy, but it can be a matter of survival for a small business like mine. If I offered a game engine based on Caterpillar and could charge 100€ per month for a seat, I don't need to sell (and support) that many. If I sell it for 5€ to 10€ one-time, I need thousands of sales per year. And that might simply be out of reach.

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