Most Valuable Things I Learned in Business School(personalmba.com)
personalmba.com
Most Valuable Things I Learned in Business School
http://personalmba.com/business-school-top-four/
2 comments
Thanks! Re: books - it's hard to break out of market pricing, since books are common and there's a comparable product sitting on the shelf next to it (or a click away). With value-based pricing, some books should sell for thousands of dollars, but they don't - market pricing is too easy, so the price of books stays low.
Information products, on the other hand, often cover the same information at 10-100x the price, since market comparison is much more difficult.
Information products, on the other hand, often cover the same information at 10-100x the price, since market comparison is much more difficult.
I didn't know what MSRP meant - so I looked it up and "Manufacturer's Suggested Retail Price" seemed to fit into the above comment. In case anyone else wonders.
What the hell is he talking about, the first Matrix movie is better than the sequels.
True. The point was that parts 2 & 3 had no chance - the expectations were so high that almost nothing could exceed them.
If you like, substitute iPhone version 1 vs. version 2. Same idea. Over-inflated expectations = poor quality experience, regardless of actual performance.
If you like, substitute iPhone version 1 vs. version 2. Same idea. Over-inflated expectations = poor quality experience, regardless of actual performance.
Re:
>All Prices are Arbitrary
I note that this varies by sector. If you're selling books, then your price is bounded by the wholesale price (on the bottom end) and the MSRP (on the high end).
Note to self: for my next startup, make sure to pick something where the upper bound isn't so clear!