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by tankenmate 5221 days ago
One of the major points raised is that pricing is largely elastic; i.e. raising or lowering your prices doesn't affect revenue. This may mean in some circumstances the correct price is the one that is so high that it leads to just one customer.

If it is the case that the pricing for this product is highly / almost completely elastic then a high price makes perfect sense. Just look at Apple's pricing strategies.

[Edit] fix grammar

1 comments

No, it said that for some products, the pricing was elastic. And under those circumstances, it still might not make sense to charge as much as you can. Even though you avoid support costs like that, it means fewer people are using and talking about your product. If people aren't telling their friends, you're missing out on a lot of free advertising.

There's a lot that goes into pricing, and most of it is not obvious at all.

Who care how many people are using your product? The purpose of a business is to make profit for its owners. I'd rather have a business that had one customer that made 10x profit than one that had 100M customers and and made 1x profit.