[mdda]

So, of the people paying $1 for the product, you know that half of them would gladly pay $2?

Sounds like it's time for 2 versions of the product : (i) The almost-full-featured version ($1) and (ii) The super-duper gold-plated version ($2). The removed feature doesn't even have to be very useful : You might lose 10% of the $1 value people, but snag 25% of the $2 value people (who just want some justification for paying the full value to them).

[barredo]

Apple's simple take on this may be revealing:

  iSomething   = $X
  iSomething+  = $X+100
  iSomething++ = $X+200

[lukifer]

I've always wondered about the sales ratios of iSomething+ versus the other two. It seems to be that most people either want the cheapest, or the best, and that the mid-range exists primarily as a stepping stone to convert the former buyers into the latter.

[alex_c]

I think many people want the second-cheapest (psychologically: good value, but not the worst), or the second most expensive (high quality, but not extravagant).

[ToastOpt]

This is especially true when "iSomething" is free. A lot of folks will want to 'buy in' to the software, out of guilt or gratitude, so will pay for "iSomething+" even if the delta is trivial.

[TillE]

I think that's the future pricing model for a lot of software products.

Think of games, for example, where you could sell the basic version for $5, then big chunks of DLC for a few dollars apiece. So you get your game into the hands of anyone willing to pay a small fee, in the hope that those who like it will continue to pay additional small fees for more content.

[nikcub]

so, shareware

[cotik]

It's hard to do that with a product that's specialized in removing features

[revorad]

So charge more for removing even more features. Call it Zen instead of Pro.

[tingletech]

charge more for the zen version, add extra features for the cheaper version.

[wlievens]

You're joking obviously, but I wonder if this has ever been successfully applied in some form or other.

[ctdonath]

Sony and other computer manufacturers will charge you more to deliver the computer _without_ the "bonus" software they usually include.

(Yes, it's probably a matter of the bonus/bloatware/crapware makers paying the manufacturer to include it vs. customers paying more to not. Flip side is a lot of that stuff _is_ useful, but many users just don't want it there to start with.)

[wlievens]

Good example.

I've just realized I saw something in my line of work too. One of our customers is planning to sell a premium version of their product that has their logo removed.

[nl]

This.

Joel Spolsky wrote a pretty good piece on capturing the consumer surplus: http://www.joelonsoftware.com/articles/CamelsandRubberDuckie...

[aptwebapps]

No, it was total revenue that returned to previous levels after the initial spike, not volume. Approximately five times as many people were willing to pay $1 as were willing to pay $5.

[baby]

I actually see that a lot in the appstore.