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Yeah, he could most likely get away with charging higher. How do you suggest a company test out pricing though? I mean I think that's exactly what Amazon has do
by timaelliott 14y ago
Yeah, he could most likely get away with charging higher. How do you suggest a company test out pricing though? I mean I think that's exactly what Amazon has done and they get criticized for doing so (since they do it in a A/B fashion)
I guess he could just bump all the songs to $10 and see if sales increase/decrease/etc over a period of time. Pricing is definitely an interesting problem, for all startups.
- metafunctor 14y agoPersonally, I wouldn't shy away from A/B testing prices (I do it), if you have enough transactions going on to run a successful experiment. Running pricing cohorts takes more time, and doing other experiments at the same time will taint the pricing experiment.