[ef4]

I'm curious about your choice of pricing.

My uninformed guess is that you can charge substantially more than this and still provide great value. Consider that $5 is about the cost of four minutes of programmer time.

[timaelliott]

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]

Personally, 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.