Well, the $800/month price was based on 2005 pricing and was competitive at the time with other offerings. The service is a maintenance software and helps people that do repair work for major retailers keep track of every work order that is going on. Essentially helping them run their business. (I’m sure these people are hurting though)
I didn’t think of the deflation angle that is interesting. I honestly think it is not only deflation but maybe deflation coupled with a bailout mindset.
There really isn’t much cost to me, but I mean the servers have to be maintained, power/bandwidth paid for, etc.. There is some cost there. I wouldn’t do it for $100/month, I already dumped one of the customers that wanted to go from $500/month down to $150/month.