Originally posted by
johnblommers:
You've described the Economics 101 (that is where I learned about it) ideal supply-demand model perfectly. So if revenues remain constant when the price is dropped then I'd recommend increasing the price to $25 since you will make more money.
Let me preface my next comment by noting that your behavior in the marketplace demonstrates one of the highest ethics I have seen. We need more such business people in the country.
But I did not feel cheated when Apple dropped the iphone price from $600 to $400, I did not feel cheated because I got no upgrade credit for Leopard, and I would not feel cheated if you charge $25 for MA3, because IMHO it is a new product, not an upgrade. Adding fish to a tank, that is an upgrade.
Agreed $25.00... Still a snip.