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sales would almost certainly be higher, but revenue may not. it's a less convoluted version of the <a href="http://en.wikipedia.org/wiki/Laffer_curve>laffer htt
by azulum 15y ago
sales would almost certainly be higher, but revenue may not. it's a less convoluted version of the <a href="http://en.wikipedia.org/wiki/Laffer_curve>laffer http://en.wikipedia.org/wiki/Laffer_curve>laffer curve</a>—the argument for lowering taxes to raise revenue. i think holding off on price changes for at least a week would be, as GHWB might say, 'prudent'. without that data, how can you know where you are on the curve? and how can you know if changes in price are the reason for more sales? i am not sure that 'impulse purchase' is where this app needs to go.
- azulum 15y agohttp://en.wikipedia.org/wiki/Laffer_curve http://en.wikipedia.org/wiki/Laffer_curve no edit button here on HN. or i am blind. though i suppose both are possible.
- Hyena 15y agoBy lowering the price, you increase the number of people who find it within their expected value calculation. By increasing the number of customers, you increase the number of data points. Increasing number of data points, if the product is good, will increase both confidence and expected value. (The latter because more people are likely to contact the data.) The spread of information will be geometric. The customer base will, at best, build quickly from a low base. However, the longer the low base period lasts, the greater the risk that some other application steals priority, ending the process. Lower prices. Market bomb. Raise prices once saturation assures that you build quickly from a medium base. Do this transparently so people don't bad mouth you, biasing future information.