TLDR Web Dev · MISCELLANEOUS
AN UNPOPULAR PERSPECTIVE ON THE SSO TAX
Summary from the TLDR Web Dev newsletter
The so-called "SSO Tax" in SaaS pricing is not an unfair practice but rather a form of price discrimination that is both logical and beneficial for both vendors and customers. Price discrimination is inherent in any market, as buyers have different preferences and willingness to pay. Vendors need to segment their customers to maximize their revenue. For example, airlines have different pricing tiers that allow vendors to offer more affordable basic tiers while still catering to the needs of high-paying customers.