Sell to people who don't care what it costs

For some reason this popped into my head today:

One of the worst kinds of businesses is one that sells something to a price sensitive consumer.

My nightmare business is a software company that creates software for school teachers to help them manage their class schedule.

Why? Because the ultimate customer is a teacher. Teachers don't make much money, and are often price conscious. They also have to pay for it out of pocket.

A big ticket software purchase for a teacher might be $9.99 per month.

Software of the same complexity, in a different niche, for somebody who uses it to make a lot of money, could cost 100x the price. And usually they just throw it on a corporate credit card. They rarely pay for it themselves. Total price insensitivity.

Example:

Imagine if you instead made a simple software tool that helped hedge fund employees analyze a certain type of trade.

Or a niche tool that helped companies file some annoying government form that would deliver a $25,000 tax benefit.

Nobody wakes up and thinks "I want to start that." It's freaking boring. And that's why it's a good business. You have a customer who will pay a large amount of money for you to solve their problem because it enables them to make far more, plus you have no competition.

Business on easy mode vs. hard mode.

Originally published in the I don't respond to long emails issue of Never Enough.