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Why don't people realize that 'high software profit margins' are fugazi?

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I'm not a fan of maximizing the numbers going up and to the right.

So what? That is basic supply/demand curve: you can either buy product (what give them signal that price is too low or right and likely can be increased for greater profit) or do not buy product due to high price (what gives signal that it can be maybe reduced for greater sale volume and possibly increased profit)