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Having 100s of SKUs is an information denial tactic to ensure that users forfeit all of their consumer surplus[0] and pay exactly what they are willing to pay i
by kmeisthax 3y ago
Having 100s of SKUs is an information denial tactic to ensure that users forfeit all of their consumer surplus[0] and pay exactly what they are willing to pay in the hopes that they get a "good one".
The problem with this tactic is that there's a lot of SKUs that give people a terrible experience and they jump to another brand.
Apple's solution to this is to instead have 50 SKUs, organize them by a few very easily understandable categories, and then price every SKU exactly within $50-$75 of one another so that there's always a meaningful upgrade for slightly more money. This is also why Apple is very stingy with storage and RAM. They use the cost of upgrades to pull you to higher priced SKUs, which then need their own upgrades, and OH LOOK there's an even nicer base model for just a little more!
[0] The amount of money you save when the thing you want to buy turns out to be cheaper than what you were willing to pay.