Walker: SaaS gross margins will collapse to 60% due to commoditization
Chris Walker · He grew to $22M ARR in 4 years—but regrets spending so much on growth. | Chris Walker, Founder of... · PMF Show · Jun 17, 2024 · at 35:29
Chris Walker, founder of Refine Labs, discusses the structural deterioration of software gross margins driven by commoditization and customer success costs.
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“And then over time, I think through pricing pressure and pricing and software commoditization, we'll see margins go even lower. Some people predict as low as 70 or 60% overall, which fundamentally changes the financial dynamics of a software company.”
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