I completely agree with this. It then leads to what you charge for your product - if 1% at $10 per month breaks even you'd need $20 at .5% and so on.
But it's not even that simple - because demand and supply kicks in - if you charge more you'll be reducing the size of the market willing to pay the higher price - so you'd need >.5% of the original market to get your original break even point!
But it's not even that simple - because demand and supply kicks in - if you charge more you'll be reducing the size of the market willing to pay the higher price - so you'd need >.5% of the original market to get your original break even point!