Making more by charging less
A few months ago, I posted this analytical piece arguing that itunes should charge less to earn more. Interestingly, this software designer has experienced in real life what I was theorizing about. He reduced the price of his software package from $40 down to $10. Guess what? He only made $4,000 at the $40 level, but he made $58,800 at the $10 level. Yup, he experienced 15-fold increase (1470%!) in sales volume at the lower price level!
Check out the entire post for more details and analysis. It’s pretty interesting, and I think useful advice for anyone who is in the digital goods business.