3 moats that define software pricing power

Added: 2026-06-02

[00:00:00]How do you pressure test the pricing power? The very basic test is that the number of modes that a software startup can have is there about three or four.

[00:00:07]That's one. There's network effects, there's economy of scale which don't really work when there's too much capital slashing around the ecosystem.

[00:00:14]There's genuine switching costs where once someone starts using the product, leaving it is either painful or creates a massive degradation of the user experience.

[00:00:23]And that's pretty much it.