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Recurring revenues: Oil or glue?

Berkonomics

Management undertakes a simple exercise of calculating the increased profitability of shutting down all R&D, sales and subordinate operations, and universally notes with shock the high net profit that results – from shutting down all operations except customer service to recurring customers (as in software support operations.).

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GrubMarket raises $60M as food delivery stays center stage

TechCrunch LA

GrubMarket , which provides a B2C platform for consumers to order produce and other food and home items for delivery, and a B2B service where it supplies grocery stores, meal-kit companies and other food tech startups with products that they resell, is today announcing that it has raised $60 million in a Series D round of funding.

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Startup Pricing: Are You Selling A Giffen Product?

InfoChachkie

A recurring entrepreneurial challenge is to determine the optimal price of a new product, especially absent a directly competitive alternative. Yet, the value of your solution will vary by customer, based on the utility each derives from your product. Anecdotally, it seems that SaaS products often behave as Giffen goods.

Pricing 100
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Entrepreneurs Should Go For The Quick Buck – Then Stop - Initial Business Models Can Be Enticing But Limiting In The Long Run

InfoChachkie

They knew that price restructuring would significantly impair their gross revenues as well as their net income, which would dramatically impact their stock price. Companies purchased keywords, placed ads and sent emails in an attempt to entice users to complete a lead form. Graph The Effect.

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Interview: Thorsten von Eicken of RightScale

InfoChachkie

But throughout the transition I had my safety net. Most big companies initially rejected use of the cloud, just as they rejected SaaS solutions when we launched GoToMyPC in 2001. He grabbed all the user email addresses I had collected and started talking to potential customers to find out what they wanted to do.