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Launch pricing is often more about PR than short-term supply and demand, especially for high-end flagship products. You don't want to establish a product's repu
by wtallis 7y ago
Launch pricing is often more about PR than short-term supply and demand, especially for high-end flagship products. You don't want to establish a product's reputation as overpriced if you expect to be able to drop prices in a few weeks or months.
Having an initial shortage can reinforce the impression that a product is very popular, and the total lost revenue from under-pricing and undersupplying at first is insignificant for a low-volume high-end part.