Ask HN: Will Kagi's subscription cost reduce with enough subscribers?

4 points by IndySun ↗ HN
I asked Kagi (free account) and the gist was no. Is there an upper limit in which subscriptions cover all future searches from all future subscribers? What is that number? Or does the scaling up always cost more to deliver?

6 comments

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They’ve introduced a $5/month intro plan, which is half the cost of the previous low tier.

They also added in AI chat at no additional cost, charging based on usage, while everyone else is trying to charge $20 for that alone.

They are pretty transparent on billing, at least for their highest cost items. At the start they would show you how much your searches cost them vs your bill. At one point I cost them more than I paid, so I tossed them some extra money to not be a drain. Now they show how much you cost them in AI tokens, and if you cost them more than you paid, you pay the difference, which feels fair. I think I use the Assistant a lot and only ever use $1-2 in a month.

With search, it did seem like scale came with per-search savings, but my hope with that was it created more margin for them to be healthy, since it didn’t seem like they had much based on what they showed in the settings. And now AI is eating into those margins a bit. I’m pretty happy with how they have handled all that. It’s probably the best $10 I spend each month.

I'm paying, I really find it useful. The rollover option is very fair.

Are there any examples of businesses becoming so successful with the sign-up to a subscription model they lower the prices (would have been a better ask)?

This isn't how business works. Pricing isn't decided on based on costs alone, it's decided by value delivered. More customers indicates higher value resulting in higher pricing.
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Why should it? I hope they make a lot of profit, it's an excellent product. The more profitable they are, the more competitors will be interested.