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by ruff
5880 days ago
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This is a great point--once you've set your price, it's very hard to come up. It's a lot easier to establish value with your product/brand at a higher price and then offer an alternative, lower-priced SKU to get more volume while still using differentiation and upsell to the higher margin product. In the case of Omni, think OmniOutliner Pro vs. OmniOutliner. It'd be interesting to see if a lot of money was left on the table when the iPhone app price rushed to $0.99 in the name of volume over long-term profit. Certainly a win for Apple in gaining end-user adoption of the store and showing that it's a viable marketplace, but I can't help but thinking value isn't being captured by price (a lot of iPhone apps cost less than a disposable, bottled soft drink). |
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