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jeffrallen 9 hours ago

Just to spell this out more clearly for the back row.of the classroom:

The price is what the customer will pay, regardless of your costs.

barrkel 9 hours ago | parent [-]

Economics teaches us that a big difference between cost and price attracts competition which should make the price trend towards the cost.

dns_snek 7 hours ago | parent | next [-]

Practice taught me that that "should" is doing a lot of heavy lifting here and it's often not the case, even across long time periods (years) that should allow competitors to emerge.

For example I calculated the cost of a solar install to be approximately: Material + Labour + Generous overhead + Very tidy profit = 10,000€

In practice I keep getting offers for ~14,000€, which will be reduced to 10,000€ with a government subsidy and my request for an itemized invoice is always met with radio silence.

ncruces 8 hours ago | parent | prev | next [-]

Only if the barrier of entry is low.

Which it won't be, if at every turn you choose the hyperscaler.

stingraycharles 7 hours ago | parent | prev | next [-]

If this is the case, cheap bandwidth for AWS, when?

_bohm 3 hours ago | parent | prev | next [-]

A big difference between cost and price is often won at the expense of many years of concerted R&D, though

conductr 4 hours ago | parent | prev | next [-]

Economics has a lot of other lessons teaching us why prices of major clouds have remained somewhat expensive relative to cost

_el1s7 9 hours ago | parent | prev [-]

Exactly.