Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
171–180 of 207 posts
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#172Earlier quoted context omitted.
All manner of ridiculously expensive gewgaws are priced that way exactly in order to exploit the marginal utility of $30, or $100, or $5000 to millionaires. The problem with pricing Starbucks that way is that a huge chunk of Starbucks strategy involves there being a Starbucks on every quarter, ready for any passerby be they millionaire or middle class, and while it is notoriously easy to do price discrimination withi…
"huge chunk of Starbucks strategy involves there being a Starbucks on every quarter" The other chunk of Starbucks strategy is that it's not about coffee. Speaking strictly of the product (and not the experience which of course is equally important) Starbucks secret sauce is essentially that it is a "sugar delivery system". I've yet to be in a Starbucks (and I"m in them every single day) where the majority of the beve…
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#173The analogy I like to use when people under price their software is "When you price you apps like toilet paper, don't be surprised when most of your customers are shit and your whole business ends up in toilet.
You managed to say it all better than I did somewhere here.
Let's just hope the message gets trough.
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#174Earlier quoted context omitted.
I don't go on road trips without a significant supply of my concentrated aqueous solution of caffeine and theanine, and my handy concentrated flavoring so that I can make energy drinks on the go. So no, I wouldn't surrender to Starbucks in that scenario. But I realize that my habits are not exactly typical.
Interested. Would you mind sharing your formula?
My caffeine/theanine formula:
Caffeine - 1.6g
L-theanine - 3.2g
Water - 2 cups
This makes for 100mg of caffeine per fluid ounce of solution, which makes measuring pretty easy. That is like a cup of coffee on the weak side of average, or 2-3 cups of tea. 200mg is like a strong cup of coffee. I have found that 100mg twice a day is close to the sweet spot where I get energy from it but don't build a tolerance. Obviously if you already have a tolerance, you'll want to use more. This mixture should be refrigerated to keep stuff from growing in it. Also, you can vary the concentration a little, but there is a limit at which the theanine solution will gel into an unusable colloidal mass. Hot water is useful for getting the ingredients to dissolve initially.
The theanine is there for two reasons: 1) it smooths out the jitters from caffeine, and has a mood elevating effect when used with caffeine and 2) studies indicate that combined with caffeine, it has a number of cognitive benefits. 2:1 theanine to caffeine is around the ratio that evidence supports.
My flavoring solution is:
Citric acid - 30g
Malic acid - 10g (optional)
Sucralose - 1.5g
Orange (or lemon) extract (83% alcohol) - 8g
Water - 2 cups
I put this in a squeeze bottle like the kind fast food places sometimes put vinegar and oil in, and it only takes a little squirt (about a teaspoon) to flavor a cup of water. I don't bother measuring this, as it's easy enough to do by taste. But do be careful not to make it too strong or the citric acid will hurt your mouth. Nothing dangerous, but it can make your gums sore.
Malic acid is not strictly necessary. It adds a bit of fruitiness, but it's subtle. You can leave it out and use 35g of citric instead of 30g.
Sucralose is the sweetener in Splenda, but it's important to remember that Splenda is highly diluted with fillers to make it the same sweetness as sugar. Pure sucralose is 600 times as sweet as sugar, so it must be measured with care. Hard Rhino is the only source I've found for it. Other sweeteners like xylitol, stevia extract, and erythritol are easier to find. Xylitol and erythritol are not sweeter than sugar, and I find stevia unpleasant. If you like stevia, it's actually more cost effective than sucralose; it's half as sweet, but it's cheaper.
If you don't want to bother with the flavoring solution, you can also mix the caffeine with anything that is sweet and sour because those flavors mask the bitterness of the caffeine. Citrus is particularly effective.
These are the most cost effective ways I've found to have tasty beverages and caffeine. The caffeine solution comes out to about 7 cents per reconstituted cup (18 cents for the equivalent of a Starbucks Grande). Most of that is actually the l-theanine; if you forgo that, it's only half a cent per cup.
The flavoring comes out to under two cents per cup, or $0.30/gallon, but depends on how much you use.
So basically, if I take this with me on a trip, I can have the same caffeine boost as a Grande, plus theanine to take away the jitters, for twenty-five cents. And as an added bonus, it's actually drinkable.
Edit: One more thing. You can use volumetric measurements if you can find the bulk density for your powders, but I don't recommend it. The scale I have is an American Weigh DIA20, which costs about 20 bucks. The only thing I don't like about it is that its maximum capacity is 20g, but it's easy enough to measure the citric acid in two shots.
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#175Horrifying. The point about the coffee cup comparison isn't that cups of coffee are the benchmark experience for product pricing; if that were the case, my next root canal would cost $0.20. The point of the coffee cup comparison is marginal utility : the money you spend on an expensive cup of coffee almost certainly has very little utility at the margin, because you are happy to chuck it away for a bad cup of coffee.…
Actually, you're missing the point here. Yes, marginal utility blah, blah, blah, but you seem to be assuming I have infinite marginally useful dollars to piss away each month. There is, by definition, a limit to how much disposable funds I am able to spend each month.
I only have $X ± Y of disposable income to toss down the drain each month, and I'm going to try and optimize the value for that money.
A dollar at the margin for a person with a $600 phone on a $50/mo data contract is not an enormous gamble.
Sure, I have nothing to loose by buying your shitty app. But I don't have a whole lot to gain, either. I still have to choose where to spend money. I'd rather get my regular cup of coffee that tastes like dirt because I know its going to wake me up for work.
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#176Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#177When I buy your amazing app v0.1 I'm also signing up for a time investment of unknown quantity. At the very least I will have to wait for it to download/install, start it up, figure out how to use it, evaluate it, and delete it if it sucks.
Rovio can release Angry Birds N and it will be a hit because that time investment has already been validated and quantified. I liked Angry Birds N-1, these screenshots of Angry Birds N look similar, I will probably like Angry Birds N.
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#178Wow. The negativity of the comments here to this post is astounding. I personally find this post very insightful. Just yesterday, I bought the EA Tetris app for $0.99. I played it for three minutes, and decided I hated the "touch" interface for Tetris. It isn't Tetris at all. And it pissed me off that I paid money for something useless. It doesn't matter if I paid $20 for it or $0.99. It just makes me feel like a foo…
Try out this app and spend five minutes on it? Eh, maybe.
Subscription music services work very nicely because the time investment for listening to new music is essentially zero. There's no download or queuing wait at all.
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#179Earlier quoted context omitted.
Why not price the coffee at $30 then for millionaires? Surely the marginal utility of $30 to them would be similar to that of $5 to someone earning $60k? Why would one pay $5 for the same amount of gas one month and $3 in another month when the marginal utility derived from the purchase of gas is precisely the same? Ignoring the price effects induced by the supply/demand characteristics and intrinsic nature of the go…
"Why not price the coffee at $30 then for millionaires? Surely the marginal utility of $30' If they could figure out a way to differentiate the product either in taste or image they actually could sell coffee or a coffee drink at a higher price in addition to what they are selling now. PR wise it could prove strangely to be a bad move thought and might send the wrong message. This is currently done with liquor to men…
Re: Stop Using The Cup of Coffee vs. $0.99 Cent App Analogy
#180Earlier quoted context omitted.
Whoa. I actually got a touch of national pride there! What a feeling! :D Anyway, one reason Swedish coffee culture might be something that can be noticed in NY is that we're pretty good at drinking coffee. See http://en.wikipedia.org/wiki/List_of_countries_by_coffee_con... ; to get a hint about how important coffee is in Scandinavia. Sweden is down at #6 these days, but we still clock in at roughly twice the consumpt…
You need to remove the trailing '>' from your link (or don't put it between angle brackets). Going by that page perhaps I should start a dutch coffee house in NY! I wonder if there are many Starbucks in Scandinavia? I know of only one here in the Netherlands.
Then there is also at least one in Utrecht Central, so we are down to 3 already.
Anyway, I know it was not your point.
Besides, as a Frenchman (living in the Netherlands), I'm not fond at all of Dutch coffee, but hey, it could probably work in "New Amsterdam" ;)