> And many tools now are priced based on headcount. Ah, live by the ARPU, die by... | Hacker News

Hacker News new | past | comments | ask | show | jobs | submit

login

gumby on July 20, 2022 | parent | context | favorite | on: VCs are scared when they should be greedy

> And many tools now are priced based on headcount.

Ah, live by the ARPU, die by the ARPU: you lack of control over the "U" means your company performance is coupled to the broad market!

Thanks for this example. It's obvious in retrospect but apparently not prospectively.

lotsofpulp on July 21, 2022 [–]

Assuming you have the pricing power to not be affected by the broad market, you would simply increase pricing to maintain ARPU.

If you cannot increase pricing, then your performance is coupled to the broad market regardless of how it is measured.

Consider applying for YC's Spring batch! Applications are open till Feb 11.
Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact