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The problem with user generated pricing is there is no supply/demand, so the user will basically pick the lowest price they feel non-guilty about, which is usua
by ry0ohki 13y ago
The problem with user generated pricing is there is no supply/demand, so the user will basically pick the lowest price they feel non-guilty about, which is usually a buck or so. Something I always thought would be interesting is a floating market price, so you start the price at say $1, and as demand increases at that price, it keeps going up.
- dualogy 13y ago> as demand increases at that price, it keeps going up Don't most ISVs/startups already have that? Just not in real-time, which would be punishing/annoying prospects needlessly.
- huhtenberg 13y agoStill there's quite a bit of wiggle room for experimenting. Compare - Pick a price between $1.95 and $19.95 to - Pick a price between $4.95 and $49.95 Both allow picking up a copy for under $5, but the second one will yield a higher average price. That's your good old anchoring. Another example. If you have an axis representing suggested prices, then if your tick marks go in $0.50 increments, people will likely to end up paying less on average compared to $5.00 increments. And so on. Cognitive manipulation is your friend :) [0] http://en.wikipedia.org/wiki/Anchoring http://en.wikipedia.org/wiki/Anchoring
- keesj 13y agoPinboard[1] does this: "The fee is based on the formula (number of users * $0.001), so the earlier you join, the less you pay."[2] [1] https://pinboard.in/ https://pinboard.in/ [2] https://pinboard.in/help/fee/ https://pinboard.in/help/fee/