51–60 of 77 posts
Earlier quoted context omitted.
Not necessarily in between, you'd have to draw a demand curve at various different prices to determine the optimum // guy who is studying economics
He said "in between", not "exactly half way". The best way to draw a demand curve would be to get some data at the half-way point. // random person on the internet
Edit: The operative word here is 'might'.
Earlier quoted context omitted.
He said "in between", not "exactly half way". The best way to draw a demand curve would be to get some data at the half-way point. // random person on the internet
The optimum point might lie outside. The curve might even dip in between the two price points. Edit: The operative word here is 'might'.
Earlier quoted context omitted.
He said "in between", not "exactly half way". The best way to draw a demand curve would be to get some data at the half-way point. // random person on the internet
The optimum point might lie outside. The curve might even dip in between the two price points. Edit: The operative word here is 'might'.
But presumably the authors wants to maximize revenue while conducting experiments. Pricing at the midway point would seem to be the lowest risk way of getting additional data.
http://www.geekwire.com/2011/experiments-video-game-economic...
Too many details to sum up nicely, but one is that when they did not advertise prices changes for CS they say almost perfect elasticity.
I think Writer is a pretty successful app that is in the charts (and Apple may have also promoted it at various times). Maybe the dynamics are slightly different for less successful apps that are less exposed in the App Store?
The trend lasted for quite some time until someone released the app onto the pirate channels, at which point my sales almost disappeared. I guess a free option can change the dynamics.
Earlier quoted context omitted.
I've always wondered about the sales ratios of iSomething+ versus the other two. It seems to be that most people either want the cheapest, or the best, and that the mid-range exists primarily as a stepping stone to convert the former buyers into the latter.
I think many people want the second-cheapest (psychologically: good value, but not the worst), or the second most expensive (high quality, but not extravagant).
So, of the people paying $1 for the product, you know that half of them would gladly pay $2? Sounds like it's time for 2 versions of the product : (i) The almost-full-featured version ($1) and (ii) The super-duper gold-plated version ($2). The removed feature doesn't even have to be very useful : You might lose 10% of the $1 value people, but snag 25% of the $2 value people (who just want some justification for payin…
This. Joel Spolsky wrote a pretty good piece on capturing the consumer surplus : http://www.joelonsoftware.com/articles/CamelsandRubberDuckie...
Its easy then. Keep the price high and it will lower your support costs. Make more profit.
In very crude terms: $1 x 5x5x5x5x5 is a lot more than $5 x 1x1x1x1x1x1