3 ms·
I didn't learn anything of note from the article after the three summary bullet point paragraphs (Users are mostly price insensitive, User acquisition costs are
by mamurphy 10y ago
I didn't learn anything of note from the article after the three summary bullet point paragraphs (Users are mostly price insensitive, User acquisition costs are high, Good tech support costs a lot of money).
I would tend to think that the first reason - the demand side factor of ("users don't care much about price") is the best reason for keeping a higher price - the market will bear a higher price.
Supply side factors ("costs are high, therefore lets raise prices") do not seem sustainable in the long term. They're a good reason to try raising prices, since without them the business would be unsustainable. But if the market won't bear a price above your costs, then it's an indication that you must lower costs (e.g., reducing support) or close down, not that you've gotten the pricing wrong.
- pjlegato 10y agoThe part about costs was not in the article... the old, lower prices, were already well above our costs. Now they're even higher than our costs.