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"No matter what price we choose, we always make the same revenue"

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Re: "No matter what price we choose, we always make the same revenue"

#71
post #6

I wonder what happens when he sells for $0. An infinite number of buyers?

For some markets & products, that works - ok, it's not an infinite number of buyers, but the make-a-profit-at-any-price model still works out. Ex.: the Wondermark.com e-book "Machine of Death" was offered free (http://machineofdeath.net/ebook), yet fans are so impressed they demanded a paid Kindle/iBooks/etc. version, leading to a healthy profit.

Re: "No matter what price we choose, we always make the same revenue"

#72

Earlier quoted context omitted.

You're joking obviously, but I wonder if this has ever been successfully applied in some form or other.

Sony and other computer manufacturers will charge you more to deliver the computer _without_ the "bonus" software they usually include. (Yes, it's probably a matter of the bonus/bloatware/crapware makers paying the manufacturer to include it vs. customers paying more to not. Flip side is a lot of that stuff _is_ useful, but many users just don't want it there to start with.)

Good example.

I've just realized I saw something in my line of work too. One of our customers is planning to sell a premium version of their product that has their logo removed.

Re: "No matter what price we choose, we always make the same revenue"

#73

This seems to disagree with what I've heard of Valve and Steam sales. That the bigger the discount, the more (total) revenue is made, almost across the board. $50 game -> 50% off, 100 sales $50 game -> 75% off, 500 sales etc

Yeah, but those are sales(aka short duration discounts). He noted a spike that eventually fell off. I bet the longer steam discounts see sales fall off in a similar manner.

Re: "No matter what price we choose, we always make the same revenue"

#75
post #18

Earlier quoted context omitted.

So charge more for removing even more features. Call it Zen instead of Pro.

You're joking obviously, but I wonder if this has ever been successfully applied in some form or other.

There are several sports cars which offer a more expensive version with fewer features (making it lighter/faster).

Re: "No matter what price we choose, we always make the same revenue"

#76
Interesting data points, but you need more before you say "no matter what price we choose, we make the same revenue."

I agree with some of the posters who suggest splitting into 2 levels of the app at different price points. (Usually, it's better to have 3 levels, but it seems in the App Store, most companies go with 2 to make it easier on customers. I'd love to find some data with evidence that one way or another is better for the App Store.)

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