I have no level of education in the field of economics. in fact, i am
only in high school. But I see a huge advantage of starting the price
high and lowering it over time. But again, i don't know what im talking
about.
say you have 5 levels of users:
1) Hard-core Newton extremists with plenty of cash
2) Hard-core newton extremists with not so much cash
3) Middle users with plenty of cash
2) Middle users with not so much cash
4) Lower users, or any users who are completely broke
The hard core Newton users, who are probably about a third of the people
(don't remember who said that), will probably buy it at this price. Say
in a few months the price is lowered to, say, 35-40$. Then it will
become more attractive to the hard-core guys with not so much cash. You
see where this is going? Each time the price is lowered it becomes
attractive to a different group of users. Eventually everyone who would
have bought it at the price that the product ends up at will have (Sept
for the broke users, but they'll probably end up finding it in a
dumpster anyway : p ). Only he makes a hell of a lot more money than if
he started at that price. This may not be his plan, but if it is it
makes sense to me.
So there is my highly educated economic analysis. Im probably wrong
about everything, but hey, i had bean thinking this since the first post
about the high price and had to get it off my chest. I think its the
ADD : )
-- Read the List FAQ/Etiquette: http://www.newtontalk.net/faq.html Read the Newton FAQ: http://www.chuma.org/newton/faq/ This is the NewtonTalk mailing list - http://www.newtontalk.net/
This archive was generated by hypermail 2.1.2 : Thu Aug 01 2002 - 06:03:29 EDT