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04-16-2013, 11:01 PM
  #373
ponder
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Quote:
Originally Posted by LarryO View Post
Pricing sticks at $300 is a good way to make people feel like their $150 sticks are not that expensive, if you know what I mean.
This post needs more love. For the most part, consumers have no idea what any product "should cost," we simply try to determine value by comparing it to other products. If there were no sticks that cost more than $100, most of us would think $100 was too much to spend on a stick. With the most expensive sticks at $250+, and sticks with only marginally worse performance at $100-150, it makes the $100-150 sticks seem like a good deal. In the wood stick days $20 was a standard price for a stick, $30 was pricey, and $40 was nuts. Obviously it's a different product now, but there was still a time (not that long ago) when $40 was a tonne of money for a stick.

I work for a software company, and this is a very common pricing strategy in the software world (especially among SaaS companies) - have a high top price point to encourage people to buy your still-fairly-pricey mid price point product, which is the real money maker. Plus for the people who are willing to pay more, you get to make more from them too.

Out of curiosity, does anyone remember how much a top of the line OPS was when they first came out? I seem to remember it was around $100-150? I'll bet production costs have come down dramatically since then too.

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