Re: The Psychology of pricing
ROBERT BRENNER <Binfog_at_aol.com> WROTE:
> Integrate cost and productivity into the model and
> you have a baseline cost from which to set price. It is
> then that you evaluate what competitors are charging or
> what you think the market will bear.
TO WHICH JOHN PICCIRILLO <john_at_tmlk.com> REPLIED:
> If you are selling an ebook, or access to a newsletter
> the cost associated with the first copy is enormous.
> Eventually your cost to produce another unit is driven
> to near zero. It's because of the resulting competition
> that most people have a tough time selling content online.
ROBERT BRENNER <Binfog_at_aol.com> WROTE:
> You may be putting a lot of R&D into a product that
> can never be sold for enough to cover costs and produce
> the profit desired.
TO WHICH JOHN PICCIRILLO <john_at_tmlk.com> REPLIED:
> Get a range of what the market will pay before you do
> the R&D. The profit I desire and the profit the market
> will bear are very different. The Internet allows for
> different pricing models not available off line.
John,
Would you please provide a numeric explanation of how
your product (an e-book or internet newsletter) is
prepared, sold, and distributed?
Unless your proposition is that you can determine
market value and price in the absence of a comparable
market, and therefore charge 100% of the cost of
production, marketing and distribution to the first
customer who comes along, thereby reaping 100% profit
on all subsequent sales; some of us are having a hard
time getting your point.
Thanks,
John Gaskill
gm_at_info-central-usa,com
Received on Tue Oct 17 2000 - 10:32:28 CDT
