If you’re in software, you’re likely creating demand in addition to fulfilling it. You’re creating the demand curve. To some extent, customers value the product at the prices where you anchor their mental models.
-
-
Also: fewer customers for the same revenue is often a win. Lower support cost, lower CAC, etc. Higher prices in the same order of magnitude (e.g. $49 vs $29 or $499 vs $199) can be close to a free lunch.
1 odpowiedź 0 podanych dalej 0 polubionych -
100%...can be huge for the business.
1 odpowiedź 0 podanych dalej 1 polubiony -
W odpowiedzi do @earthlingworks @mijustin
Yeah I was going to mention that if you’re break even at the lower price, every minor price increase makes a big impact on the bottom line (see Netflix)
2 odpowiedzi 0 podanych dalej 0 polubionych -
W odpowiedzi do @runako @earthlingworks
Again, your ability to increase prices depends on demand! In 2011, Netflix tried to raise prices and lost 1 million subscribers. Recently, their product has become more inelastic (likely because of folks' desire for their original content), which has helped them raise prices.pic.twitter.com/b1n0sUdngQ
2 odpowiedzi 0 podanych dalej 0 polubionych -
Two questions related to this: 1. When you say "demand" exactly what do you mean? 2. How do you measure demand?
3 odpowiedzi 0 podanych dalej 0 polubionych -
W odpowiedzi do @earthlingworks @runako
Eventually, econ folks will use that data to generate a demand curve – which illustrates how much customers are willing to pay for a given product. It's a bit different with software (because quantity can be unlimited) but software still follows the basic principles I think.pic.twitter.com/VtlCL1Ghgh
1 odpowiedź 0 podanych dalej 0 polubionych -
Heh, yeah, I know about the demand curve though I don't do all that...I just test pricing and see if I make more money :)
1 odpowiedź 0 podanych dalej 2 polubione -
W odpowiedzi do @earthlingworks @runako
Yes! But the price testing we do with digital products basically follows the demand curve.pic.twitter.com/AtsNTc9NYC
2 odpowiedzi 0 podanych dalej 0 polubionych -
I'm familiar with the theory...was just clarifying what you meant when you mentioned certain terms (given the example used). I stay more on the practical side. Don't know anyone running a biz that calculates demand, etc. like in those graphs.
1 odpowiedź 0 podanych dalej 3 polubione
That's kind of what I'm saying: the simple pricing tests we do seem to align with the theory. (Especially when it come to price elasticity) I'm not saying we should be calculating demand the econ folks do. But a lot of this theory seems to hold true for me.pic.twitter.com/aBbz7bjUEu
-
-
I get ya
0 odpowiedzi 0 podanych dalej 0 polubionychDziękujemy. Twitter skorzysta z tych informacji, aby Twoja oś czasu bardziej Ci odpowiadała. CofnijCofnij
-
Wydaje się, że ładowanie zajmuje dużo czasu.
Twitter jest przeciążony lub wystąpił chwilowy problem. Spróbuj ponownie lub sprawdź status Twittera, aby uzyskać więcej informacji.
building