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by erock 4882 days ago
This isn't just related to software. I remember reading a few years ago an interview with Henry Juszkiewicz, the CEO of Gibson guitar (here http://usatoday30.usatoday.com/money/companies/management/20...) The quote is "I said we are going to increase prices. Prices were ridiculously low. And people said, the price has been decreasing 20% a year, how can you reverse that? I said I'm just going to double the prices on a lot of models. I actually tested it and got an inverse price curve. Basically it showed that every time I raised prices a certain amount, volume would go up."

Not sure how many people play guitar here, but Gibson's quality has slipped a lot since then, yet they are still raising prices, and I imagine volume is still increasing because of it.

Personally, I build my own guitars :)