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That's why you start high, and then go down. People actually want to pay you buckets of cash if you let them - all startups should keep that in mind. As a cons
by barkingcat 16y ago
That's why you start high, and then go down. People actually want to pay you buckets of cash if you let them - all startups should keep that in mind.
As a consumer, I've also thought - hey this service/product is totally worth $50, and I would give them that money - but it's priced at $10 - so I'll just pay what they ask - 10 bux it is - it's a steal! - Great for me, not so great for the seller.
Have you ever felt like that as a consumer?
And if you're looking for consumers who can't afford more than $10 to spend on this theoretical product, maybe you're in the wrong industry segment, or you need to match the sale price with the production costs - ie you can't hire coders at $80,000/year just to make a $10/user product - until you hit that scale of # of customers.
McDonald's hires kids for their crew at perhaps $12,000/year, and sells burger meals for average, maybe $6 - $10.
And they're extremely profitable - even though they are selling physical goods with warehouses, processing plants, real estate, etc.